Ratings on Cypress Semiconductor Corp. reflect ongoing stresses in the data networking and computing markets, offsetting moderate improvements in operating performance and improving financial flexibility. Cypress manufactures specialty memory, timing, and logic semiconductors for the networking, wireless, and computing markets. In May, Cypress sold $600 million in convertible subordinated notes, used in part to redeem existing convertible subordinated notes, to repurchase shares of its common stock, and to purchase call spread options with respect to its common stock. San Jose, Calif.-based Cypress had about $713 million in debt and capitalized operating leases outstanding at June 30, 2003, pro forma for debt repurchases in July. Cypress has strengthened its product portfolio through internal development and acquisitions. Still, prices have declined about
