S&P: Stats ChipPAC on watch

Standard & Poor’s said it kept the BB+ long-term corporate credit rating and axBBB+ long-term Asean regional scale rating on Stats ChipPAC Ltd. on CreditWatch with negative implications.

The agency also said it also kept the BB+ long-term issue rating on the company’s senior unsecured notes on CreditWatch with negative implications.

The maintained watch status is because Jiangsu Changjiang Electronics Technology’s proposed acquisition of the company for $780 million hinges on some conditions that are still outstanding, S&P said.

If conditions of the acquisition are not met by the target date of June 30 and if the involved parties do not agree on a new target date, the agency said it believes Stats ChipPAC will continue to have government-related entity support through its current major shareholder, Temasek Holdings (Pvt.) Ltd.

If the conditions are met, the potential downside for the ratings are based on Stats ChipPAC’s new status as a Jiangsu Changjiang subsidiary and if that mitigates the loss of support triggered by the change of ownership, S&P said.

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