S&P ups SanDisk ratings

Standard & Poor's said it raised its corporate credit rating on SanDisk Corp. to B+ from B and its subordinated debt rating to B- from CCC+.

The outlook is stable.

S&P said the ratings upgrade reflects SanDisk's sustained growth in profitability, despite substantial business risk. The presence of substantial balance-sheet liquidity offsets anticipated capital expenditures and contingent liabilities stemming from SanDisk's flash memory fabrication joint venture with Toshiba Corp. (BBB-/negative/A-3).

The ratings on SanDisk continue to reflect significant business risk due to a narrow business profile, focused on the rapidly emerging flash-memory-card market and substantial investment requirements in its flash memory fabrication joint venture, partly offset by a strong market position, increasing profitability, and currently strong liquidity.

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