S&P lifts Macom

S&P said it raised its ratings for Macom Technology Solutions Holdings Inc. and its senior secured to B from B-. The recovery rating remains 3.

“The rating action reflects our view that Macom will continue to reduce leverage toward 5x in fiscal 2021 by maintaining cost discipline while still investing in new products to support growth across its core end markets,” S&P said in a press release.

The agency said it sees Macom generating significant annual free operating cash flow of $100 million-$110 million in fiscal 2021, helped by efficient net working capital and capital expenditure management.

The outlook is stable.

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