Fitch rates Hynix notes BB

Fitch Ratings said it assigned an expected rating of BB to the proposed issue of $500 million senior unsecured notes due 2017 by Hynix Semiconductor Inc., which has a long-term foreign-currency issuer default rating of BB.

Fitch said there will not be any material change to Hynix's leverage, as well as its issuer default rating. The notes are protected by restrictive covenants and conditions, the agency added.

The rating reflects Hynix's dominant position in the global memory semiconductor industry, its proven technology, efficient production and improved financial status, Fitch said.

However, Fitch said it remains concerned over the volatility of DRAM and NAND flash memory prices as well as Hynix's large capital expenditure needs for technological migration.

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