FILE PHOTO: The Intel Corporation logo is seen at a temporary office during the World Economic Forum 2022 (WEF) in the Alpine resort of Davos, Switzerland May 25, 2022. REUTERS/Arnd Wiegmann/File Photo
(Reuters) - Moody's downgraded Intel's senior unsecured rating on Thursday to BAA1 from its earlier A3 rating, citing concerns about the chipmaker's profitability.
The unsecured ratings outlook has been changed to negative from stable, Moody's said. It affirmed Intel's Prime-2 short-term commercial paper rating.
The downgrade, coupled with a change in outlook to negative, highlighted the pressure on Intel's credit profile in the near term.
"The downgrade of the ratings reflects our expectations for Intel's significantly weaker profitability over the next 12 to 18 months," Moody's said.
It expects Intel's total ratio of debt to interest, taxes, depreciation, and amortization to "approach 7x" by the end of 2024 and return to 4x by 2025.
Intel currently has a total debt-to-EBITDA ratio of 4.35 for the last 12 months, according to LSEG data.
(Reporting by Arsheeya Bajwa in Bengaluru and Max A. Cherney in San Francisco; Editing by Anil D'Silva and Pooja Desai)
