Moody's ups Hynix to Ba3

Moody's Investors Service said it upgraded Hynix Semiconductor Inc.'s senior unsecured bond rating to Ba3 from B1 following the full redemption of the secured notes issued by its subsidiary, Hynix Semiconductor Manufacturing America Inc., and which has lowered the risk of legal subordination.

Moody's also placed the Ba3 corporate family rating and senior unsecured bond rating of Hynix on review for possible upgrade. This action follows ongoing positive developments in Hynix's operational performance - both in terms of revenue growth and profitability, the agency said.

However, Hynix continues to have large capital expenditure plans that have resulted in negative free cash flow. It also is exposed to the volatile memory markets with declining average selling prices due to aggressive capacity expansion in the industry, Moody's said.

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