Texas Instruments Inc is giving Standard & Poor’s Corp mild cause for concern, and the ratings agency revised its ratings outlook to stable from positive. It also affirmed senior debt at single-A, subordinated debt at A-minus, and commercial paper at A-1, affecting about $900m of rated debt. The outlook revision reflects the company’s increasing reliance on its semiconductor sector, which continues to grow relative to its other businesses, potentially leading to increased volatility of earnings and cash flows, but the ratings reflect Texas Instruments’ good position and solid technology base in the semiconductor industry, and long-term contracts supplying tactical defense systems. Its increasingly narrow business base will preclude a rating upgrade over the next several years.
