Micron Technology outlook cut to negative, ratings affirmed - S&P 19.06.2003 18:23 Headlines NEW YORK (AFX) - Standard & Poor's Ratings Services said it revised its outlook on Micron Technology Inc to negative from stable, reflecting continued price pressures and weak demand levels, which it said have pressured the company's profitability and liquidity. S&P affirmed its 'B+' corporate credit and 'B-' subordinated debt ratings on the company. "Micron is expected to retain its strong position in the industry through the course of the business cycle," said S&P credit analyst Bruce Hyman. Micron has "substantially closed" the product gap after lagging Samsung Electronics Co Ltd in its transition to double data rate (DDR) memory from the formerly dominant synchronous DRAM (SDRAM) technology, S&P said. This has led to some recovery in market share and contributed to profitability, it said. Continued weak operating profitability and negative cash flows, however, could lead to a further deterioration in liquidity in the next few quarters, despite the company's good competitive position and technology base, the rating agency said. jlw
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