Moody’s rates Semiconductor Manufacturing Baa3

Moody’s Investors Service said it assigned a first-time Baa3 issuer rating to Semiconductor Manufacturing International Corp.

The outlook is stable.

The rating reflects the strong support that the company receives from government-related entities, Moody’s said.

Such support enables the company to weather industry downturns and maintain a healthy credit profile, the agency said.

SMIC’s shareholders have, from the company’s inception, shown consistent support in the form of additional investments during industry downturns, Moody’s said.

The agency said it views the investments as evidence of the company’s strategic importance to China’s integrated circuit industry.

The rating also considers the company’s stable operating track record over the last two years, Moody’s said, and the cyclical industry.

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