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Investing.com -- Moody’s Ratings has affirmed ON Semiconductor Corporation’s Ba1 corporate family rating while changing the outlook from positive to stable, the ratings agency announced Thursday.

The outlook revision reflects weaker-than-expected growth for ON Semi, though early signs of stabilization are emerging. The semiconductor market downturn and the company’s heavy exposure to automotive and industrial markets have contributed to this performance.

While ON Semi’s end markets appear to be improving, Moody’s expects only modest growth in coming quarters. The ratings agency projects that debt to EBITDA (Moody’s adjusted) will remain above 2x over the next 12-18 months, higher than previous expectations of low- to mid-1x range.

Despite strong free cash flow generation, ON Semi plans to return 100% to shareholders, with its board recently authorizing a $6 billion share buyback program. The company has not established a leverage target and has previously shown willingness to pursue large-scale acquisitions.

The Ba1 corporate family rating reflects ON Semi’s strong market position with increasing exposure to higher-margin analog end markets. However, automotive and industrial sector recoveries have been slower than anticipated, with ongoing inventory adjustments and subdued demand.

Moody’s expects ON Semi’s revenue to grow in the mid-single digits percentage range in 2026, following a mid-double-digit percentage decline during the last twelve months ending October 3, 2025.

The company maintains very good liquidity with approximately $2.8 billion in cash, cash equivalents, and short-term investments as of October 3, 2025. ON Semi also has a $1.5 billion revolving credit facility maturing in 2028, with $375 million drawn as of October 3, 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Moody’s Ratings has upgraded Hecla Mining Company’s corporate family rating to Ba3 from B1, while maintaining a stable outlook.

The upgrade reflects Hecla’s substantial debt reduction and strong free cash flow generation, even with silver and gold prices below current spot levels. The company’s elimination of its silver-linked dividend in January 2025 has further improved its ability to deleverage and enhanced its free cash flow position.

Hecla recently announced the sale of its Casa Berardi mine for $593 million, including a $160 million upfront cash payment, $112 million in equity, $80 million in deferred cash, and up to $241 million in contingent consideration.

While the sale reduces Hecla’s diversification and increases concentration, Moody’s believes it allows the company to focus on core silver operations and invest in exploration opportunities to increase silver production. The rating agency noted that Casa Berardi was expected to enter a production hiatus starting 2028, so the sale should have limited impact on earnings beyond 2026.

Hecla has used proceeds from an equity offering and organic cash flow to fully pay down its revolver borrowings, repay Investissement Québec notes, and redeem a portion of its outstanding senior unsecured notes over the past two years.

Moody’s also upgraded Hecla’s probability of default rating to Ba3-PD from B1-PD, its senior unsecured notes rating to B1 from B2, and its speculative grade liquidity rating to SGL-1 from SGL-3.

The Ba3 rating is supported by Hecla’s favorable geopolitical footprint in the US and Canada, the low-cost position and long mine life of its Greens Creek and Lucky Friday operations, and significant mineral reserves.

However, the rating remains constrained by the company’s modest scale, exposure to volatile metal prices, limited operational diversity, and asset concentration risk with Greens Creek and Lucky Friday mines generating most of the company’s free cash flow.

As of September 30, 2025, Hecla had $134 million in cash and $218 million available under its $225 million revolving credit facility. The company’s cash balance would increase to $402 million after including the upfront payment from the Casa Berardi sale.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.