Moody's cuts MagnaChip notes to Caa3

Moody's Investors Service said it downgraded the corporate family rating of MagnaChip Semiconductor LLC to Ca from Caa1, along with MagnaChip Semiconductor Finance Co. and MagnaChip Semiconductor SA's $100 million five-year senior secured credit revolver to Caa3 from B3, $500 million aggregate floating- and fixed-rate second-priority senior secured notes due 2011 to Ca from Caa1 and $250 million senior subordinated notes due 2014 to C from Caa3.

The outlook is negative.

The downgrade follows MagnaChip's failure to make the coupon payment on its senior secured notes and senior subordinated notes within the 30-day grace period from the coupon payment date of Dec. 15, 2008. This has triggered a default on its senior notes, Moody's said.

The downgrade reflects the low expected recovery rate for different tranche of debts, the agency added.

The negative outlook reflects the uncertainty in the debt restructuring process and the subsequent recovery rate, Moody's said.

© 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.