Moody's rates Amkor notes B1

Moody's Investors Service said it assigned a B1 rating to Amkor Technology, Inc.'s new senior notes due 2027.

Moody's also downgraded Amkor's speculative grade liquidity rating to SGL-2 from SGL-1 and affirmed its Ba3 corporate family rating.

The outlook is stable.

The proceeds will be used to repay the existing $525 million of senior notes due 2022 and improve Amkor's debt-maturity profile, the agency said.

The ratings will be withdrawn following repayment, Moody's said.

The downgrade on the speculative grade liquidity rating reflects an expectation that Amkor will only reach break-even free cash flow in 2019, as depressed demand is expected to lead to cash consumption in the first half of 2019, the agency said.

The ratings reflect Amkor's business position as the second largest outsourced semiconductor assembly and test company in the world, Moody's said.

The ratings also consider Amkor's high customer revenue concentration, which limits Amkor's leverage in contract negotiations, the agency said.

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