Fitch cuts Hynix

Fitch Ratings said it downgraded Hynix Semiconductor Inc.'s long-term foreign-currency issuer default and senior unsecured debt ratings to BB- from BB.

The outlook remains stable.

Fitch said the downgrade reflects its concern over Hynix's ongoing generation of negative free cash flow and the deterioration of the company's credit metrics over the past 18 months, reflecting a combination of the steep decline in memory product prices and heavy capital spending.

Hynix's adjusted net debt-to-EBITDAR leverage rose to 1.2 times from 0.5 times. Fitch said it may downgrade Hynix further if its adjusted net debt-to-EBITDAR leverage exceeds 3 times.

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