Moody's assigns Yageo Baa3

Moody's Investors Service said it assigned its national-scale Baa3(tw) rating to Yageo Corp.

The outlook is stable.

Moody's said the rating reflects the company's four core credit strengths: leading domestic market position, including cost competitiveness and global footprint; favorable long-term industry developments; balanced product mix and capability to produce higher-margin products to lower cash flow volatility; and ongoing de-leveraging strategy to improve financial flexibility.

At the same time, the rating reflects credit challenges that include exposure to cyclical nature of passive component industry, the competitive operating environment in capacitors, which is dominated by Japanese players, and execution risk in implementation of new strategic initiatives.

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