Solid positions in the DRAM and NAND flash memory markets Good cost position High debt levels Volatile earnings Rapid evolution of technology Large capital investments The rating on Korea-based Hynix Semiconductor Inc. reflects the company's solid position in the dynamic random access memory (DRAM) industry and good cost position. However, these strengths are offset by the semiconductor industry's extremely challenging operating environment; specifically, the notoriously cyclical and capital-intensive nature of the industry, and severe pricing pressures, particularly on commodity-like products like DRAM, from which Hynix derives the bulk of its revenues. Acute cash flow constraints in the past led the company to rely more heavily on the trailing edge 200mm-fabrication (fab) plants than any of its major DRAM competitors. However,
