In 2015 Moodys Investors Service (Moodys) lowered Advanced Micro Devices, Inc.s (AMD) corporate family rating to B3 from B2, and the ratings on the senior unsecured notes to Caa1 from B2. Moodys stated The downgrade of the corporate family rating to B3 reflects AMDs prospects for operating losses over the next year and negative free cash flow, in contrast to our previous expectations of modest profitability and positive free cash flow. Discuss why credit ratings are important to a company like AMD.