S&P Global Ratings Downgrades Intel Corp Credit Rating

(Reuters) – S&P Global Ratings on Tuesday downgraded chipmaker Intel Corp (NASDAQ:INTC)'s credit rating to 'BBB' from 'BBB+', citing slow business recovery and uncertainty following management changes.

Intel's revenue for the first nine months of this year, approximately flat year-on-year at $38.84 billion, fell below the ratings agency’s expectations.

The departure of CEO Pat Gelsinger, integral to Intel's integrated manufacturing strategy, contributes to uncertainty regarding the company's turnaround plan.

S&P Global noted, "Despite the company's assurances that business strategy will remain largely unchanged, we still assume some level of change under the new CEO, which could add to uncertainty of the timing of the business turnaround."

Gelsinger left before completing his four-year roadmap to regain Intel's lead in producing the fastest and smallest computer chips, a title now held by Taiwan Semiconductor Manufacturing Co.

Nevertheless, S&P Global maintained a "stable" outlook for the company, reflecting expectations for Intel's growth following a modest recovery next year.