EINDHOVEN, The Netherlands, Dec. 10, 2015 (GLOBE NEWSWIRE) — NXP Semiconductors N.V. (NASDAQ:NXPI) announced that it has received credit rating upgrades from both Standard & Poor’s Ratings Services (“S&P”) and Moody’s Investors Services (“Moody’s”) as a result of the successful merger between NXP Semiconductors (“NXP”) and Freescale Semiconductor (“Freescale”).
Both rating agencies attributed the upgrades to the benefit of the merger, which will provide larger scale, greater product and geographic diversity, as well as meaningful cost synergies, all resulting in robust free cash flow.
- S&P upgraded its long-term corporate rating for NXP B.V to investment grade or BBB- from BB+. Additionally, S&P assigned a “Stable Outlook”, and has withdrawn its recovery rating on the company.
- Moody’s upgraded its long-term corporate rating for NXP B.V to Ba1 from Ba2.
“We are very pleased with the rating changes both S&P and Moody’s have made. The rating agencies’ decisions are a clear validation that the merger between NXP and Freescale results in an improved capital structure, a strengthened balance sheet and clear focus on high growth markets,” said Dan Durn, NXP’s Chief Financial Officer. “The credit rating upgrades are a further recognition of the potential improved free cash flow, operational performance and strong earnings momentum of the new combined entity.”
