Who fires a CEO without a suitable replacement In lined?
Intel Downgraded to BBB Rating Over High Industry Costs Amid Management Uncertainty, S&P Says
Intel was downgraded to S&P's BBB rating from BBB+ over a slow industry recovery and higher-than-expected manufacturing costs that are expected to last through 2025, the rating agency said Tuesday.Intel's discretionary cash flow, or DCF, is expected to improve amid the chipmaker's cost-cutting efforts, but its DCF-to-debt ratio is seen to approach 10% by the end of 2026, "a level we view to be appropriate at its current rating," S&P said.S&P also pointed that the departure of Intel Chief Executive Pat Gelsinger brings uncertainty to the execution of the company's turnaround plan, especially amid fierce competition in the chip industry.Intel would need a consistent strategy under a new CEO, launch products on schedule and reach cost-cutting targets to improve its credit metrics over the next two years, S&P said.
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