CORPORATESISSUER COMMENT 30 SEPTEMBER 2015INTEL CORPORATION (INTC)Moodys Senior Unsecured Rating A1Moodys Outlook STABond-Implied Rating A1CDS-Implied Rating A1EDF-Implied Rating A1As of 9/29/2015ANALYST CONTACTSAllerton G. Smith 212-553-4058 Sr Dir-Sr Research Analyst allerton.smith@moodys.comABOUT CAPITAL MARKETS RESEARCHAnalyses from Moodys Capital Markets Research, Inc. (CMR) focus on explaining signals from the credit and equity markets. The publications address whether market signals, in the opinion of the groups analysts, accurately reflect the risks and investment opportunities associated with issuers and sectors. CMR research thus complements the fundamentally-oriented research offered by Moodys Investors Service (MIS), the rating agency.CMR is part of Moodys Analytics, which is one of the two operating businesses of Moodys Corporation. Moodys Analytics (including CMR) is legally and organizationally separated from Moodys Investors Service and operates on an arms length basis from the ratings business. CMR does not provide investment advisory services or products.View the CMR FAQ Contact the CMR team Follow us on TwitterMoodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital Markets Research, Inc. is a subsidiary of Moodys Corporation. Moodys Analytics does not provide investment advisory services or products. For further detail, please see the last page.Market Signals ReviewIntel Corp.: Market-Implied Ratings All Converge at A1 The bond-, CDS- and EDF'-implied ratings for Intel have all converged on the A1 level (Figure 1). As well, the three market-implied ratings gaps are all at zero notches.Three months ago the bond-implied rating for Intel was A1, where it sits today. In the interim it varied between a high of Aa2 and a low of A2. The current CDS-implied rating of A1 is one notch above the A2 level of 90 days ago. During the period it fluctuated between Aa3 and A2. The EDF-implied rating was A2 three months ago, hovered between A2 and A1, and also resides at A1 today.FIGURE 1. INTEL: MOODYS AND MARKET-IMPLIED RATINGS, 90 DAYS (DAILY DATA)MOODY'S ANALYTICS CORPORATES2 30 SEPTEMBER 2015 MARKET SIGNALS REVIEW: INTEL CORP.: MARKET-IMPLIED RATINGS ALL CONVERGE AT A1According to our ratings gap-conditioned transition matrices, companies rated A1 with a bond-implied rating of A1 outperformed the broad market 24% of the time over the following 12 months, matched the markets performance 9% of the time, and underperformed the broad market 67% of the time.Readers will recall that when a market-implied rating falls, the underlying securities have underperformed the broad market, and when a market-implied rating rises the underlying securities have outperformed the broad market.Over the last three months, Intels bond-implied ratings gap was never better than +2 notches or worse than -1 notch. At present this gap is zero notches, identica...
