S&P raises Infineon Technologies

S&P said it raised its ratings on Infineon Technologies AG, its senior unsecured notes and Cypress Semiconductor Corp.'s U.S. private placement notes to BBB+ from BBB. It also upgraded Infineon's hybrids to BBB- from BB+.

Infineon doubled its annual revenue base to about €16.3 billion in 2023 since 2019 and is well positioned in growing segments to keep surpassing the semiconductor market over the cycle, the agency said.

“In our view, this provides Infineon with the ability to maintain its S&P Global Ratings-adjusted EBITDA margin of at least 30% and free operating cash flow (FOCF) sustainably above €1 billion per year over the cycle, even when revenue may be temporarily flat as expected in the current fiscal year (ending Sept. 30, 2024),” S&P said in a press release.

The outlook is stable.

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