Fitch cuts STMicroelectronics

Fitch Ratings said it downgraded STMicroelectronics' long-term issuer default and senior unsecured ratings to BBB.

The outlook on the issuer default rating is negative.

The downgrade follows deterioration in operating performance at the company's wholly owned businesses, evident most recently in the first quarter results, according to the agency.

Expectations of weak free cash flow performance and the level of volatility present in the business, added to concerns over the macro-economic outlook and the prospect of ongoing losses at wireless joint venture, ST-Ericsson, mean the company's risk profile is no longer consistent with a BBB+ rating, the agency noted.

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