S&P puts Semiconductor Manufacturing on watch

S&P said it placed its BBB- long-term issuer credit rating on Semiconductor Manufacturing International Corp. on CreditWatch with negative implications.

“Export restriction's effect on SMIC's operations and expansion plans are still highly uncertain. The CreditWatch reflects our view that the company could potentially face material supply chain risks, as exports of certain semiconductor equipment, accessories, and raw materials from the U.S. are subject to Export Administration Regulations (EAR), according to the company's filing on Oct. 4, 2020,” S&P said in a press release.

The agency said it plans to resolve the negative watch once it a better understanding of the potential magnitude of the impact of U.S. restrictions on SMIC.

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