S&P: Stats ChipPAC view negative

Standard & Poor's said it revised the outlook on Stats ChipPAC Ltd. to negative from stable and affirmed its BB+ long-term corporate credit rating and the BB+ rating on its senior unsecured notes.

"The outlook revision on STATS ChipPAC reflects the challenging conditions in the outsourced semiconductor assembly and testing services industry and the possible adverse impact on the company's financial metrics if the downturn becomes prolonged," S&P analyst Wee Khim Loy said in a statement.

The rating reflects the company's involvement in the high-risk and capital-intensive outsourced semiconductor assembly and testing services business, according to the agency.

. Stats ChipPAC invests continually in new equipment and technology to remain among the industry leaders, despite the industry's cyclicality, the agency noted.

Since 2006, the company has been disciplined in its capital expenditure, which lowered its lease-adjusted debt-to-EBITDA ratio to 1.4x in 2008 from a high of 2.7x in 2005, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.