Intel holds onto gains even as Moody's cuts outlook to negative due to 'ongoing challenges'
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Intel (NASDAQ:INTC) held onto gains on Monday even as credit ratings agency Moody's lowered its outlook on the semiconductor company to negative, citing "ongoing challenges."
The credit ratings firm affirmed its A1 rating on Intel's (INTC) debt, along with its wholly-owned subsidiary, Altera, but noted that the outlook for both was changed to negative. 
It cited the fact that both Intel's (INTC) manufacturing and product development have continued to worsen "in the face of a weakening macro environment, strong competitive challenges, and supply chain disruptions."
Intel (INTC) shares gained more than 2% to $37.13 in mid-day trading.
Nonetheless, Moody's (INTC) said Intel's (INTC) liquidity is "very robust" with $27B in cash and its leverage is modest, though it could be reduced because of lower profitability and free cash flow. 
The move comes after Intel (INTC) reported second-quarter results that Chief Executive Pat Gelsinger said were "below standard." The company also lowered its outlook for the third-quarter and cut its full-year revenue guidance. 
On Thursday's earnings call, Intel's (INTC) Gelsinger praised the fact that U.S. legislators have passed the CHIPS Act, which will now go to President Biden to be signed into law.