AMD (AMD -3.5%) slumps in afternoon trading thanks to a credit downgrade from Fitch: the...

|By:, SA News Editor

AMD (AMD -3.5%) slumps in afternoon trading thanks to a credit downgrade from Fitch: the chipmaker's long-term and senior unsecured debt have both been lowered to CCC (3 notches below investment-grade) from B. The ratings agency expects AMD to post negative free cash flow of $250M-$450M for 2013, and predicts annual sales will decline at a mid-to-high teens rate. It's also concerned about upcoming cash payments to Globalfoundries. Fitch had already downgraded AMD in October. (earlier)