Moody’s lifts MagnaChip view to stable

Moody’s Investors Service said it revised MagnaChip Semiconductor Corp.’s outlook to stable from negative.

The agency also said it affirmed its Caa2 corporate family and senior unsecured bond ratings.

The outlook change reflects an improvement in the company’s liquidity position, Moody’s said.

The company has become current with its financial filings since the second quarter of 2015, the agency said.

It also agreed in principle to settle its shareholder lawsuits in the past several months, so its regulatory and legal risks have declined, Moody’s added.

And MagnaChip’s cash balance improved to $91 million at year-end 2015 after five consecutive quarters of decline, the agency said.

Moody’s cautioned, however, that whether the company will successfully turn around its operations is uncertain, particularly given challenging macro-economic conditions.

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