HONG KONG (Standard&Poor's) Oct. 16, 2008--Standard&Poor's Ratings Services today lowered its long-term corporate credit rating on Korea-based MagnaChip Semiconductor LLC (MagnaChip) to 'CCC' from 'B'. At the same time, Standard&Poor's lowered its ratings on the company's senior secured debt to 'CCC' from 'B' and senior subordinated debt to 'CC' from 'CCC+'. All ratings were placed on CreditWatch with negative implications. The downgrades and CreditWatch placements reflect the company's severe liquidity problems. MagnaChip's cash and short-term investments were $36.5 million at the end of June 2008, while its short-term debt was $85 million. Standard&Poor's expects the company's liquidity to deteriorate further given that it generated about $107 million negative free operating cash flow
