Our 'BB+' long-term corporate credit rating on Hong Kong-based semiconductor equipment manufacturer ASM Pacific Technology Ltd. (ASMPT) is derived from: Our anchor of 'bb+' based on our "fair" business risk profile and "intermediate" financial risk profile assessments for the company. The modifiers have no impact on the rating. Volatile margins. Exposure to technology risk in the back end equipment business. Established market position. Diversified product and customer portfolio. Positive free cash flow in the coming two years. Adequate cash to cover short-term borrowings. Higher dividend payout than peers'. Increase in debt following the acquisition of DEK Corp. The stable outlook reflects our expectation that ASMPT will maintain its established market position in the back end semiconductor equipment market, leverage its
