AMD (AMD -2.6%) sells off after Fitch downgrades its rating on the chipmaker's senior notes to B...

|By:, SA News Editor

AMD (AMD -2.6%) sells off after Fitch downgrades its rating on the chipmaker's senior notes to B from B+, and revises its outlook to Negative. The ratings agency warns AMD's cash balance (currently $1.5B) could fall below its stated optimal level of $1.1B due to ongoing losses. It's also worried about ARM-based competition and pending R&D job cuts, and thinks gross margin will remain in the mid-to-high- 30s due to ASP pressure and low utilization rates. (S&P)