S&P: Semiconductor Manufacturing notes BBB-

Standard & Poor’s said it assigned a BBB- long-term issue rating and cnA- long-term Greater China regional scale rating to a proposed issue of dollar-denominated senior unsecured notes by Semiconductor Manufacturing International Corp.

The rating on the notes is the same as the corporate credit rating on the company because the agency said it believes the company will actively manage its onshore debt, reducing structural subordination risk for the notes.

The proceeds will be used to repay debt, meet capital expenditures in relation to capacity expansion and for general corporate purposes, S&P said.

The company is likely to maintain its position as the largest and most technologically advanced foundry in China, the agency said.

The company’s weaker operating scale and limited ability to develop advanced process technology in comparison with its global peers temper these strengths, S&P said.

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