S&P cuts Ritek

Standard & Poor's said it lowered its corporate credit and senior unsecured debt ratings on Ritek Corp. to B from B+.

The outlook is stable.

S&P noted that the rating action reflects Ritek's weakening free operating cash flow as a result of poor profitability and financial support to its ailing 70%-owned organic light emitting diode display subsidiary, RiTdisplay Corp., as well as its deteriorating liquidity position.

Ritek's profitability has declined substantially due to a prolonged industry downturn since 2004, the agency added.

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