S&P signals possible upgrade for chip maker AMD as quarterly results improve
By APWednesday, May 12, 2010
S&P signals possible upgrade for chip maker AMD
NEW YORK — Standard & Poor’s may upgrade its credit rating on Advanced Micro Devices Inc., the world’s No. 2 provider of microprocessors.
The agency on Tuesday cited improving financial results at the company over the past three quarters. Revenue and profit margins have both improved since the recession, when consumers and businesses waited longer to replace old computers.
S&P has a “B-” rating on AMD, which is considered non-investment, or “Junk” grade. A better rating could lower AMD’s borrowing costs.
AMD’s most recent quarterly results, released last month, showed the company is benefiting from the upswing in demand for personal computers.
AMD, based in Sunnyvale, Calif., earned $257 million, reversing a year-earlier loss of $416 million. Revenue jumped 34 percent to $1.57 billion.
The company’s stock rose 9 cents, or 1 percent, to $9.08 in afternoon trading.
