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KLA-Tencor Corporation -- Moody's assigns Baa1 to KLA-Tencor's proposed senior unsecured issuance; outlook stable

Moody's Investors Service ("Moody's") assigned an Baa1 rating to the proposed senior unsecured notes of KLA-Tencor Corporation (KLA). "Despite Moody's expectation for a pullback in wafer fabrication equipment spending in 2019, ongoing fundamental drivers for semiconductor industry capital expenditures will drive revenue and free cash flow growth over the next few years leading to strong financial flexibility, including low leverage and strong liquidity " said Richard Lane, Moody's Senior Vice President. Lane went on to say that "KLA's conservative financial posture and strong liquidity will allow it to invest aggressively even during weaker environments".