Moody’s Downgrade Corning’s Credit Outlook to Negative

Moody’s Investors Service downgraded Corning’s credit outlook from stable to negative on Tuesday, March 24, 2009. The reason? Moody’s cited a declining demand for LCD goods that began in late 2008. Corning announced that it will reduce 3,500 jobs after posting a 65% decline in profits in Q4’08. Moody’s is remaining cautious stating 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: Forbes

Leave a Reply