Bangkok--24 Feb--Standard & Poor's
SAN FRANCISCO (Standard & Poor's) Feb. 23, 2016--Standard & Poor's Ratings Services lowered its corporate credit rating on Hillsboro, Ore.-based Lattice Semiconductor Corp. to 'B' from 'B+'. The outlook is stable.
At the same time, we lowered the issue-level rating on the company's $350 million senior secured term loan to 'B' from 'B+'. The recovery rating on the debt remains '3', indicating our expectation for meaningful (50%-70%; lower half of the range) recovery in the event of a payment default.
"The downgrade reflects the company's continued weakness in operating performance, which fell meaningfully short of our forecast," said Standard & Poor's credit analyst Minesh Shilotri.
The stable outlook reflects our expectation that the company will generate meaningful revenue growth in fiscal 2016 through new customer wins, resulting in free operating cash flow near $50 million and adjusted leverage below 5x.