Correction: S&P lowers SanDisk

In a corrected rating, Standard & Poor's said it lowered SanDisk Corp.'s corporate credit and senior unsecured ratings to B from B+ and removed them removed from CreditWatch.

The agency incorrectly said on Oct. 22 that the senior rating was secured.

The outlook is stable.

According to S&P, the action reflects the company's restructured joint venture with Toshiba, third-quarter results and near-term outlook and the withdrawal of Samsung Electronics Co. Ltd.'s (A/stable/A-1) offer to acquire the company.

The agency said the downgrades reflect SanDisk's credit profile as an independent company and expectation of continued sharp operating losses in the next two to three quarters.

Ratings reflect significant business risk stemming from a narrow business profile, price volatility in the NAND flash memory industry and the substantial investment required to maintain technology and cost leadership, the agency said.

Substantial liquidity, stable royalty income streams, and the risk and cost-sharing benefits of the company's manufacturing joint ventures with Toshiba Corp. partly offset company business risks, the agency noted.

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