The ongoing expansion of semiconductor foundries and the increasing complexity of AI-related chips has improved the demand for KLA Corp.'s products and services. Meanwhile, the company has maintained low leverage, which S&P Global Ratings anticipates will remain below 1.5x Therefore, we raised our ratings on KLA, including the issuer credit rating and our issue-level rating on its unsecured debt, to'A'from'A-'. The stable outlook reflects our view that the company will maintain its strong market position and conservative financial policies, enabling it to sustain S&P Global Ratings-adjusted leverage of below 1.5x. KLA is an AI beneficiary and we now anticipate it will rapidly expand its revenue in fiscal 2027. Three converging structural trends are supporting the rising demand
