Research Update: Cypress Semiconductor Corp.Upgraded To 'BB' From 'BB-' On Improved Credit Metrics; Debt Ratings Raised; Outlook Stable

Cypress Semiconductor Corp. is seeing strong demand for its products across all its end markets, with good visibility in 2018, resulting in significant improvement in its financial metrics. We are raising our corporate credit rating on Cypress Semiconductor to 'BB' from 'BB-'. We are simultaneously raising our issue-level rating on the company's revolving credit facility and senior secured term loan to 'BB+' from 'BB', and on the company's multiple convertible note tranches to 'BB-' from 'B+'. The stable outlook reflects our expectation that Cypress will continue to benefit over the near to mid-term from strength in its connectivity and MCU businesses, resulting in EBITDA growth and margin improvements over the next 12 to 24 months, with leverage falling to the

...+ Cypress Semiconductor Corp. is seeing strong demand for its products across all its end markets, with good visibility in 2018, resulting in significant improvement in its financial metrics. + We are raising our corporate credit rating on Cypress Semiconductor to '##' from '##-'. + We are simultaneously raising our issue-level rating on the company's revolving credit facility and senior secured term loan to '##+' from '##', and on the company's multiple convertible note tranches to '##-' from 'B+'. + The stable outlook reflects our expectation that Cypress will continue to benefit over the near to mid-term from strength in its connectivity and MCU businesses, resulting in EBITDA growth and margin improvements over the next 12 to 24 months, with leverage falling to the mid-1x area and healthy discretionary cash flow....

Research Update