Fitch: STMicroelectronics outlook stable

Fitch Ratings said it believes the flash memory joint venture (NewCo) announced between STMicroelectronics NV and Intel Corp. strengthens STMicroelectronics' A issuer default rating.

The outlook remains stable.

The joint venture's capital structure underlines the ongoing capacity within the debt markets for semiconductor risk, the agency said, and the venture may provide further debt capital market activity, given the ongoing investment needs that NewCo will have in the medium term and the possibility that it could refinance part of its bank debt in the public markets.

Fitch anticipates that the expected future uplift in operating margins and free cash flow in STMicroelectronics' reported results will provide support for the company's A- rating, which already assumes continued restructuring progress by the company.

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