Moody“s Investors Service downgraded Corning Inc.“s credit outlook to “Negative” from “Stable” on 24 March 2009, citing a falloff in demand that began late in 2008.
Corning is the world“s largest …
Moody“s Investors Service downgraded Corning Inc.“s credit outlook to “Negative” from “Stable” on 24 March 2009, citing a falloff in demand that began late in 2008. Corning is the world“s largest maker of LCD glass substrates. It has suffered from falling demand for LCD televisions and computer screens, saying earlier in 2009 that it would cut 3,500 jobs as its 4Q profit fell 65%. Moody“s affirmed the company“s investment grade “Baa1” senior unsecured rating, pointing to the company“s liquidity and large share in key markets. Some also see a rebound for the company later in 2009. A Citi Research Investment analyst upgraded Corning shares on 22 March 2009 to “Buy” from “Hold”, predicting an uptick in demand from manufacturers followed by a return of consumer demand. But Moody“s remained cautious, saying in a statement that Corning“s “debt holders could face slightly elevated risks until … operations and returns from joint-venture investments produce more robust levels of profitability and free cash flow generation”.