Moody's ups STMicroelectronics view to stable

Moody's Investors Service said it changed to stable from negative the outlook on the Baa1 senior debt ratings of STMicroelectronics NV, and affirmed the company's ratings at their current level.

The stable outlook reflects the good progress that the company has made in boosting its operating profit margin more than 5% over the last 12 months, Moody's said.

The company has strengthened its liquidity and capital structure by monetizing the proceeds of the company's exit from the volatile and capital-intensive flash memory business, the agency said.

The rating remains constrained by the competitive disadvantage of a largely European cost base, as reflected by its track record of profit margins that are well below those of several of its international peers, Moody's said.

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