Moody’s upgrades MagnaChip, bond to Caa1

Moody's Investors Service said it upgraded MagnaChip Semiconductor Corp.’s corporate family rating and senior unsecured bond rating to Caa1 from Caa2.

The outlook remains stable.

"The rating action reflects indications of increasing traction in MagnaChip's operational turnaround, as it improves revenue and maintains positive funds from operations," Moody's vice president and senior analyst Gloria Tsuen said in a news release.

"Such improvements have put the company in a stronger liquidity position and give it more time to restore its business and financial health."

MagnaChip's second quarter 2016 revenue of $167 million was up 12.8% quarter-on-quarter, despite a $9 million impact from the closure of its six-inch fab in late February.

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