The ratings on San Jose, Calif.-based Cypress Semiconductor Corp. reflect aggressive marketplace conditions and weakening profitability. Cypress had about $630 million in debt and capitalized operating leases outstanding at June 30, 2005. The company manufactures specialty memory, timing, and logic semiconductors for the networking, wireless, and computing markets. Cypress plans to make an initial public offering of the common stock of its silicon solar power subsidiary, SunPower Corporation in the December quarter, subject to customary approvals. Cypress has strengthened its product portfolio through internal development and acquisitions, and is shifting its focus toward proprietary devices, now about 25% of sales, while de-emphasizing commodity products. Still, prices tend to decline about 30% year-over-year, while demand has been volatile. The company's June
