S&P: CMC Magnetics stable

Standard & Poor's said it affirmed its BB- corporate credit rating on CMC Magnetics Corp. and its convertible bond issue. At the same time, the outlook on the rating was revised to stable from positive.

The outlook revision reflects a recent fall in prices for CMC's compact disk-recordable (CD-R) and digital versatile disk-recordable (DVD-R) related products, and the company's continuing aggressive financial policy.

S&P said the rating on CMC reflects the company's leading position in the global optical storage media industry and its competitive cost structure. These factors, however, are partially offset by the highly competitive and volatile nature of the optical storage media industry, and the company's aggressive financial strategy.

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