S&P: Lam remains on watch

Standard & Poor's said it is keeping all of its ratings on Lam Research Corp., including the BB+ corporate credit rating, on CreditWatch with positive implications, where they were placed on Dec. 15.

The agency said it placed Lam Research's ratings on CreditWatch following the announcement that the company will merge with Novellus Systems Inc. in a stock-for-stock transaction valued at about $3.3 billion or 1.125 shares of Lam Research for each share of Novellus.

"We expect the proposed merger to improve our view of Lam Research's business risk profile," said S&P credit analyst David Tsui in a news release, "as the company expands its leadership positions beyond its previously narrow business focus in plasma etch and single-wafer clean segments of the semiconductor wafer equipment addressable market."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.