Moody's rates Amkor notes B1

Moody's Investors Service said it assigned a B1 rating to Amkor Technology Inc.'s new $250 million senior notes issuance due 2011 (non-callable) and affirmed the company's existing ratings, including the senior implied rating of B1, issuer rating of B1, senior subordinated as well as subordinated rating of B3, and speculative grade liquidity rating of SGL-2.

Ratings affirmed include the company's $471 million 9¼% senior notes due 2008 and $425 million 7¾% senior notes due 2013; both at B1; $200 million 10½% senior subordinated notes due 2009 at B3; $233 million 5¾% convertible subordinated notes due 2006 at B3; and $147 million 5% convertible subordinated notes due 2007 at B3.

The outlook remains stable.

Proceeds from the notes offering will be used to refinance the existing $168.7 million term loan (it is expected that the associated $30.0 million revolving credit facility will remain in effect, subject to an amended and restated credit agreement), with excess funds made available for general corporate purposes.

Moody's said the affirmation of existing ratings is based upon the company's ongoing operational improvement and sound capital structure management throughout 2003 (extended its debt maturity profile, reduced annual debt servicing requirements and opportunistically tapped the equity marketplace).

The ratings profile also reflects the company's leveraged capital structure, capital intensive business model and historically volatile operating performance.

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