Fitch may lift Hynix

Fitch Ratings said it placed Hynix Semiconductor Inc.'s long-term foreign- and local-currency issuer default ratings and senior unsecured rating of BB- on Rating Watch positive.

This follows creditors' official announcement to select SK Telecom Co., Ltd. (A/Rating Watch negative) as the preferred bidder to purchase their 15% stake in Hynix, according to the agency.

"Fitch believes that Hynix's credit profile may benefit from the presence of SKT as the major shareholder in light of SKT's stronger ability than the current creditors, to provide financial support if needed," Alvin Lim, an associate director at Fitch, said in a statement.

"Equity injection from the planned new share issuance to SKT will also contribute to improving Hynix's cash position in the midst of a weak DRAM cycle."

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