S&P places STMicroelectronics on watch

Standard & Poor's said it had placed its BBB+ long-term corporate credit rating on STMicroelectronics NV on CreditWatch with negative implications.

At the same time, the agency said it affirmed the A-2 short-term rating.

The agency placed the rating on CreditWatch to reflect its opinion that the company is likely to report significantly lower revenues, operating margins and free cash flows in 2012 than previously expected, following a weakening of operating results that started in the second half of 2011.

This could lead S&P to revise its assessment of the company's business risk profile downward and consequently to lower the rating, the agency said.

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