S&P revises Semiconductor Manufacturing view to positive

S&P said it revised the outlook for Semiconductor Manufacturing International Corp. to positive from stable and affirmed the company’s BBB- rating.

“The positive outlook on SMIC reflects the meaningful increase in the company’s financial resources, which we believe will be deployed to develop advanced process nodes. It also reflects our view that the Chinese government will strengthen ongoing support for SMIC amid U.S.-China trade tensions. These factors increase the company’s likelihood of success in the development and commercialization of advanced technology over the next 18-24 months, which could improve its profitability and free operating cash flow in the long run,” S&P said in a press release.

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