Weak position in the global semiconductor industry. Low, albeit modestly improving, operating profitability. Weak technological capabilities, particularly in the foundry business. Exposure to the cyclical semiconductor industry. High debt that we consider unsustainable over the longer term. Marginal free operating cash flow over the next two years. The stable outlook reflects our expectation that MagnaChip Semiconductor Corp. can sustain its cash levels over the next 12 months without significant pressures on its liquidity, primarily due to its modestly improving operating cash flows. We may lower the ratings if we see significantly increasing liquidity risk for the company with rapidly deteriorating cash level, possibly due to weaker-than-anticipated operating performance. We could raise the ratings if MagnaChip significantly improves its profitability and
