Ratings on Cypress Semiconductor Corp. reflect weak markets and challenging competitive conditions, in part offset by the company's good operating performance in recent quarters and the company's adequate financial flexibility. San Jose, Calif.-based Cypress had about $706 million in debt and capitalized operating leases outstanding at Sept. 30, 2003. The company manufactures specialty memory, timing, and logic semiconductors for the networking, wireless, and computing markets. Networking market conditions remain weaker than historical levels, while competitive price pressures are significant. In May 2003, Cypress sold $600 million in convertible subordinated notes. Cypress used proceeds to redeem existing convertible subordinated notes, to repurchase shares of common stock, to purchase call spread options with respect to common stock, and to bolster liquidity. Cypress
