More bad news was announced this week for troubled Sunnyvale chip maker Advanced Micro Devices.
Fitch Ratings on Wednesday lowered its rating for AMD from the already junk category of “CCC” to “B.” Noting that it has about $2.1 billion in debt, Fitch said the chip makers’ anemic cash flow could “potentially approach the company’s minimum operating level.”
Most of AMD’s chips are used in personal computers. But with sales of those devices slowing, it has been seeking to expand into other markets, such as servers and tablets. However, Fitch warned that “achieving the company’s target of 40 percent-50 percent of sales from higher-growth markets will require a number of years.”