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Fitch Revises Outlook on Renesas Electronics to Stable

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Fitch Ratings has changed the outlook on the long-term issuer default ratings of Renesas Electronics (TYO:6723) to stable from negative, according to a Friday release.

Fitch affirmed the company's BBB ratings on its $850 million senior unsecured notes due November 2026, noting its acquisition strategy is expected to keep average credit metrics more consistent with a BBB rating than a BBB+ rating.

The revision reflects Fitch's view of strong profitability recovery, supported by the company's solid business profile and proceeds from the sale of the timing business, concluded on Wednesday.

Fitch expects the company's EBITDA gross leverage to improve to about 2.0x in 2026 (2025: 2.7x) on stronger profitability and debt repayment. The agency expects EBITDA to rise by 17% in 2026, on end-market recovery and AI and data-center-related demand.

EBITDA is expected to grow 9% in 2027 and 2028, supporting continued deleveraging, according to Fitch.

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