Bulletin: MagnaChip Semiconductor Ratings Unaffected By Issuance Of Exchangeable Notes

HONG KONG (S&P Global Ratings) Jan. 18, 2017--S&P Global Ratings today said its corporate credit ratings on MagnaChip Semiconductor Corp. (MSC; CCC+/Stable/--) are not affected by the issuance of exchangeable senior notes of US$86.25 million by MagnaChip Semiconductor S.A., which is a fully owned subsidiary of MSC. The corporate group is a Korea-based analog and mixed-signal semiconductor designer and manufacturer. In our view, this bond issuance will have limited impact on MSC's financial metrics because we expect its better-than-expected and modestly improving operating performance to mitigate the debt increase. We also believe this funding will moderately enhance the company's liquidity position. The issue rating on the company's existing US$225 million notes, issued by the parent MSC and structurally subordinated to

...HONG KONG (S&P Global Ratings) Jan. 18, 2017--S&P Global Ratings today said its corporate credit ratings on MagnaChip Semiconductor Corp. (MSC; ###+/Stable/--) are not affected by the issuance of exchangeable senior notes of US$86.25 million by MagnaChip Semiconductor S.A., which is a fully owned subsidiary of MSC. The corporate group is a Korea-based analog and mixed-signal semiconductor designer and manufacturer. In our view, this bond issuance will have limited impact on MSC's financial metrics because we expect its better-than-expected and modestly improving operating performance to mitigate the debt increase. We also believe this funding will moderately enhance the company's liquidity position. The issue rating on the company's existing US$225 million notes, issued by the parent MSC and structurally subordinated to the exchangeable notes, are unaffected by this issuance too. This is because of the relatively smaller size of the exchangeable notes and the parent's significant downstream...

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