And pressure looked to develop in the fiber-optic sector after Corning (GLW announced its intention late Monday to price a $500 million convertible stock offering on July 31. As a result of the looming offering, both Moody's Investors Service and Standard & Poor's sliced the company's credit rating to "junk" status.
UBS Warburg maintained its "hold" rating on the stock. "While the June quarter saw Corning improve its cash management along with improving metrics in the non-telecom businesses, the end market for optical fiber continues to deteriorate. Fiber remains the true driver --and currently the detractor -- of Corning's operating performance," the firm told clients.
Warburg said it does not believe Corning faces imminent liquidity concerns but believes it is "prudently assessing all aspects of its cost and capital structure to insure survival."
UBS Warburg maintained its "hold" rating on the stock. "While the June quarter saw Corning improve its cash management along with improving metrics in the non-telecom businesses, the end market for optical fiber continues to deteriorate. Fiber remains the true driver --and currently the detractor -- of Corning's operating performance," the firm told clients.
Warburg said it does not believe Corning faces imminent liquidity concerns but believes it is "prudently assessing all aspects of its cost and capital structure to insure survival."
