By Matt Tracy

(Reuters) -Fitch downgrading U.S. chipmaker Intel’s credit rating by one notch on Monday, according to a note by the ratings agency, which assigned a negative outlook to Intel’s rating.

Fitch downgraded Intel to BBB from BBB-plus, placing it just two notches shy of junk credit status.

The downgrade follows Fitch’s assessment that Santa Clara, California-headquartered Intel faces heightened challenges maintaining demand for its products. Fitch cited growing competition from peers such as Dutch rival NXP Semiconductors, Broadcom Inc and Advanced Micro Devices.

“Credit metrics remain weak and will require both stronger end markets and successful product ramps, along with net debt reduction over the next 12-14 months” for Intel to recover its recent ratings, Fitch analysts wr

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