Bulletin: SK Hynix Ratings Unaffected By Planned KRW4 Trillion Investment Related To Toshiba Memory Corp. Acquisition

HONG KONG (S&P Global Ratings) Sept. 28, 2017--S&P Global Ratings today said that its ratings on SK Hynix Inc. (Hynix; BBB-/Stable/--) are not affected by the Korea-based memory semiconductor manufacturer's planned investment of about Korean won (KRW) 4 trillion (close to $3.5 billion) related to the acquisition of Toshiba Memory Corp. (TMC). We expect Hynix' investment to have a limited impact on the company's financial metrics, assuming the deal goes through as planned. This is mainly because of Hynix's strong recent operating performance and good free cash flow on the back of a favorable global memory chip market. Hynix made a record high operating profit of about KRW3 trillion in the second quarter of 2017. The company's net cash position,

...HONG KONG (S&P Global Ratings) Sept. 28, 2017--S&P Global Ratings today said that its ratings on SK Hynix Inc. (Hynix; ###-/Stable/--) are not affected by the Korea-based memory semiconductor manufacturer's planned investment of about Korean won (KRW) 4 trillion (close to $3.5 billion) related to the acquisition of Toshiba Memory Corp. (TMC). We expect Hynix' investment to have a limited impact on the company's financial metrics, assuming the deal goes through as planned. This is mainly because of Hynix's strong recent operating performance and good free cash flow on the back of a favorable global memory chip market. Hynix made a record high operating profit of about KRW3 trillion in the second quarter of 2017. The company's net cash position, with cash holdings of KRW5.1 trillion as of June 30, 2017, should also support its credit metrics, in our view. We expect limited near-term benefits from the deal to Hynix's competitive position or profitability, given the company's indirect investment...

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