Fitch affirms STMicroelectronics

Fitch Ratings said it affirmed STMicroelectronics' long-term issuer default and senior unsecured ratings at A- and has removed them from Rating Watch negative, where they were originally placed in April.

A stable outlook has been assigned.

The affirmation follows a review of the implications of the company's proposed wireless chipset joint venture with NXP, Fitch said.

The review has considered possible further improvements in capital intensity and how the company intends to rebuild its cash position, the agency said.

The transaction does not appear to increase the risk of sizeable cash funded acquisitions, Fitch said, adding that the company appears committed to rebuilding a healthy cash balance and ongoing portfolio pruning.

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