Moody's Investors Service upgraded Monday Advanced Micro Devices, Inc.'s (AMD) corporate family rating to B2 from B3 and revised its outlook to "positive".
Advanced Micro Devices, or AMD, headquartered in Sunnyvale, California, is the world's second largest designer and manufacturer of microprocessors and also makes graphics processors.
AMD's recent rating upgrades also include probability-of-default rating to B2 from B3 and revision of $390 million senior note due 2012 to B2 from Caa1.
Moody's upgrade decision is prompted by Intel's hefty litigation settlement, enabling significant boost to AMD's liquidity and help deleverage its current over levered capital structure. Under the settlement agreement, Intel will pay $1.25 billion to AMD within thirty days.
It was on February 19 that Moody's affirmed its B3 corporate family rating and negative outlook for AMD.
"To the extent that AMD can demonstrate improved operating performance over the next 12 to 18 months, along with an effective product and technology roadmap while maintaining a liquid balance sheet, the ratings could experience upwards pressure over time," noted Moody's.
AMD finished Monday's regular trading at $6.43, on the NYSE.
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