TOKYO (Standard&Poor's) Aug. 16, 2001--Standard&Poor's today revised the outlook on its long-term rating on Korea-based Hynix Semiconductor Inc. (Hynix) and its subsidiary Hynix Semiconductor Manufacturing America Inc. (HSMA) to negative from stable. At the same time, Standard&Poor's affirmed its single-'B' long-term corporate credit ratings on the two companies. The outlook revision reflects the worsening prospects for Hynix's profitability and cash flow protection measures amid a severe market downturn in the company's mainstay dynamic random-access memory (DRAM) business. DRAM prices have fallen by an unforeseen level in recent months, which is placing severe pressure on the company's earnings generation and weakening its financial flexibility. In the second quarter of 2001, the company posted an operating
