Intel Corp (INTC)

[greg s]

My take:

From the reuters news relaese:

The ratings outlook affects the following:

Senior implied rating --

B2 Senior secured shelf registration -- (P)

B2 Senior unsecured shelf registration -- (P)

B3 Subordinated shelf registration -- (P)

Caa1 Preferred stock shelf registration -- (P) Caa2 At June 2002

From my research, anything at or below BB (B2} is junk status, and junk ("High yield" for the PC) means:

Bonds that have little or no collateral or liquidation value and are typically very risky. For this risk, they offer a high rate of return. They are issued by corporations without sales and earnings track records, or by those with questionable credit. Moreover, in the 1980s, junk bonds were popular instruments for corporate mergers and acquisitions. The bonds usually have a credit rating of BB or lower. Because the term has an unfavorable connotation, issuers and holders prefer the bonds to be called "high yield bonds."

Now this is a bit out of my realm of expertise, so if anyone sees it differently, I'm certainly ready to listen.


greg.

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