S&P: Conexant outlook negative

Standard & Poor's said it revised its outlook on Conexant Systems Inc. to negative from stable while affirming its B corporate credit rating on the company. The company's subordinated debt rating is CCC+.

S&P said the action reflects price pressures and weakening market conditions, which are likely to constrain the company's profitability in coming quarters. At the same time, Conexant announced that it will reduce staff by 13% and take an undisclosed restructuring charge.

Ratings continue to reflect Conexant's high leverage, aggressive competitors, and challenges related to rapid technology evolution, which are only partly offset by the company's good positions in its key markets, the agency said.

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