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Moody's cuts Corning outlook to 'Negative'

Post Time:Mar 25,2009Classify:Company NewsView:366

Moody's Investors Service downgraded Corning Inc.'s credit outlook to "Negative" from "Stable" on Tuesday, citing a falloff in demand that began late last year.

Corning (nyse: GLW - news - people ), a specialty glass and ceramics company, is the world's largest maker of liquid-crystal-display glass.

It has suffered from falling demand for LCD televisions and computer screens, saying earlier this year it would cut 3,500 jobs as its fourth-quarter profit tumbled 65 percent.

Moody's (nyse: MCO - news - people ) affirmed the company's investment grade "Baa1" senior unsecured rating, pointing to the company's liquidity and large share in key markets.

And some also see a rebound for the company later this year. A Citi (nyse: C - news - people ) Research Investment analyst upgraded Corning shares on Sunday to "Buy" from "Hold," predicting an uptick in demand from manufacturers followed by a return of consumer demand.

Corning's stock rose 49 cents, or 3.8 percent, to $13.47 in afternoon trading Tuesday.

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."

Source: Associated PressAuthor: shangyi

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