S&P's Photronics ratings unaffected

Standard & Poor's said its rating and outlook on Photronics Inc. (BB-/stable) remain unchanged following the company's announced plans to build a $150 million to $300 million photomask production facility in South Korea.

The new factory should be operational in late 2007 or early 2008 and will let the company serve the major Korean chip makers such as Samsung Electronics Co. Ltd. with leading edge masks, the agency said. Photronics currently operates a major mask factory and a research and development facility in South Korea.

S&P said the substantial expenditure is mitigated by Photronics' plans to relocate some existing equipment to the site and the likely phasing of equipment installation over a several-year period. The agency said it believes that Photronics has the liquidity and debt capacity to complete the construction of the plant without affecting its credit quality.

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