Investing.com -- Moody’s Ratings has upgraded Sandisk Corporation’s corporate family rating to Ba2 from Ba3, citing the company’s conservative financial policy and improving performance since its spin-off from Western Digital Corporation in February 2025.
The ratings agency also upgraded Sandisk’s probability of default rating to Ba2-PD from Ba3-PD, and its backed senior secured first lien bank credit facility to Ba2 from Ba3, while maintaining a stable outlook.
Since separating from Western Digital, Sandisk has used its free cash flow to reduce financial leverage, cutting its outstanding senior secured term loan balance by approximately one-third over the last two quarters. The company’s reported debt is now less than its cash balance.
Moody’s noted that Sandisk is benefiting from strong demand across its end markets, with supportive pricing due to tight supply conditions expected to continue in the near term. The ratings agency anticipates Sandisk’s financial leverage will decline toward 0.8x debt to EBITDA from about 3.4x over the next 12-18 months.
The company’s credit profile reflects expectations of low financial leverage and very good liquidity. Sandisk maintains a large cash balance of approximately $1.4 billion as of October 3, 2025, and has a fully-available $1.5 billion senior secured revolving credit facility due in 2030.
Moody’s expects Sandisk’s revenues to increase toward $9.5 billion from $7.8 billion over the next 12-18 months, with EBITDA margins approaching 20%.
Sandisk designs and manufactures data storage devices based on NAND flash technology, including solid state drives, embedded storage, removable storage cards, USB drives, and NAND wafers and components.
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