Fitch ups Freescale Semiconductor to B-

Fitch Ratings said it upgraded the long-term issuer default rating for Freescale Semiconductor, Inc. to B- from CCC.

The outlook is positive.

The actions affect $5.8 billion of total debt.

Fitch said the ratings and outlook reflect its expectations for strengthening operating performance and free cash flow, enabling debt reduction and the potential for total debt to operating EBITDA (total leverage) approaching 5.5x over the intermediate term.

The agency expects strong demand, particularly in automotive, which represents more than 40% of revenues, and wireless infrastructure markets will drive low- to mid-single digit revenue growth in 2014. Longer term, Fitch expects low-single digit growth within the context of the semiconductor cycle.

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