Fitch Affirms International Rectifier's Sr Sec Credit Fac `BB'.

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 28, 2001

Fitch has affirmed International Rectifier Corporation's (IR) `BB' senior secured revolving credit facility and `B+' rating on IR's 4.25% convertible subordinated notes.

The ratings reflect IR's leading market position and proprietary technology, geographic and customer diversification, and a modestly levered and highly liquid balance sheet. Of concern are the cyclical and highly competitive industry environment, exposure to Asian economies, and the effect of potential acquisitions on the IR's operating and financial profiles. A Fitch bank loan rating considers both the likelihood of payment default and the ultimate recovery of the secured facility.

The rating for the senior secured bank debt also reflects a collateral package consisting of a pledge of capital stock of all foreign subsidiaries or, alternatively, a pledge of all intercompany notes. The secured bank debt also benefits from a well-conceived covenant package that limits excess leverage, protects against ongoing operating losses, and requires a minimum liquidity profile. Fitch considers the IR's long operating history, exhibited technological leadership, and conservative capital structure to be compelling arguments for a strong recovery profile.