Fitch lowers STMicroelectronics view to negative

Fitch Ratings said it revised the outlook on STMicroelectronics to negative from stable and affirmed its long-term issuer default rating and senior unsecured ratings at BBB+.

The company's downgrade guidelines were both breached in 2011 on a consolidated basis driven by the performance of ST-Ericsson, its wireless chipset joint venture, Fitch said.

Even allowing for adjustments for Ericsson's share of the losses, metrics continue to look weak through 2012, the agency said.

While Fitch has taken a positive view of management actions in past business restructuring and improvements in the wholly owned businesses, ST-Ericsson is a concern, Fitch said.

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