S&P rates Hynix notes B+

Standard & Poor's said it assigned its B+ rating to Hynix Semiconductor Inc.'s (B+/stable/--) proposed floating-rate senior notes due 2012 and senior notes due 2015. The size of the issuances is expected to total $750 million.

"The rating on Hynix reflects positive expectations for the normalization of the company's operations following the early end to the workout plan, in addition to its greatly improved debt maturity profile upon refinancing of bank debt. Also, Hynix has a solid position in the dynamic random access memory (DRAM) industry and a good cost position," said S&P analyst Eun Jin Kim.

"However, these strengths are offset by the semiconductor industry's extremely challenging operating environment: specifically, the notoriously cyclical and capital-intensive nature of the industry and severe pricing pressures, particularly on commodity-like products like DRAM, from which Hynix derives the bulk of its revenues."

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