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Moody's rates Stats ChipPAC notes Ba1
Moody's Investors Service said it assigned a Ba1 rating to Stats ChipPAC Ltd.'s proposed dollar-denominated senior unsecured notes. The agency also said it affirmed its Ba1 corporate family and senior unsecured debt ratings.
The outlook is stable.
The company plans to use the bond proceeds to fund up to $600 million in capital distribution to shareholders, the agency said.
Moody's said the ratings reflect the company's stand-alone credit fundamentals of Ba2 and an assessment of a one-notch uplift from the expected support of its 83.8% parent, Singapore Technologies Semiconductors Pte Ltd., which is a wholly owned subsidiary of Temasek Holdings (Pvt.) Ltd.
Although the proposed debt-funded capital distribution plan is credit negative, as it will erode the company's equity base, the company's projected financial profile remains adequate for its stand-alone Ba2 rating, the agency said.
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