Re: Underlying results even worse.
Intel aren’t AAA rated. According to Fitch rating grades, they are A-.
“Fitch's view that structurally higher investment intensity as Intel seeks to regain technology leadership and build out its foundry services business amidst weak demand conditions and market share losses, will result in significant intermediate-term negative FCF. Offsets to capital investments, including financial partnerships and government incentives, are likely insufficient to support cash needs over this horizon, requiring incremental debt funding and pressuring credit metrics. Meanwhile, execution risk is considerable, given that Intel is cutting costs while investing to out-innovate competitors over the next three-to-five years”
Intel are now only two pips above junk. You might or might not be surprised that such a company currently commands an interest yield of just 5.2% on its bonds, just 2% above Germany central bank base rate!