Fitch ups Advanced Micro ratings

Fitch Ratings said it has upgraded Advanced Micro Devices Inc.'s senior unsecured rating to B- from CCC+. The company's senior secured debt is affirmed at B.

The outlook is stable.

Fitch said the ratings action is supported by Advanced Micro Devices' improved near-term liquidity and profitability, successful execution of its restructuring program, expectations of increased IT hardware spending in the company's key markets during 2004 and an improved semiconductor market, and the company's relatively stable market share in the PC microprocessor market and leading position in flash memory.

The ratings also consider the company's significant ongoing research and development and capital spending requirements, historic operating losses and volatile cash flow, the expectation that the company will maintain high levels of debt, and potential gross margin pressure related to the impact of a greater reliance on flash memory in the sales mix.

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