S&P ups Hynix Semiconductor credit to CCC+

Standard & Poor's said it raised its long-term corporate credit rating on Hynix Semiconductor Inc. to CCC+ from SD, reflecting the company's successful completion of a debt reorganization plan and improving performance in its core memory chip business.

At the same time, the long-term ratings on Hynix Semiconductor Manufacturing America Inc. were raised to CCC+ from CC.

The long-term ratings on both companies were also placed on CreditWatch with positive implications, following the announcement on Nov. 26 that Citigroup had made an offer to buy Hynix's System SI business, the company's remaining non-memory chip division. Media reports have estimated the deal to be worth about $500 million to Hynix.

"Hynix has emerged successfully from its debt reorganization plan and is focusing on its core memory business, which has recently benefited from favorable industry conditions," said S&P credit analyst Eun Jin Kim. "Nevertheless, Hynix's capital investment requirements are high and need to be increased in the medium term to maintain competitiveness against companies such as Samsung Electronics Co. Ltd. and Micron Tech."

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