U.S. semiconductor capital equipment manufacturer Lam Research Corp. announced earlier this month that it agreed to terminate the proposed merger with KLA-Tencor Corp. We are affirming our ratings on Lam, including the 'BBB' corporate credit rating. The stable outlook reflects our expectation that the company will maintain its leadership positions in etch, deposition, and clean products within the semiconductor capital equipment industry, and that its moderate financial policy will remain intact, providing a buffer for the highly volatile industry cyclicality. On Oct. 27, 2016, S&P Global Ratings affirmed its 'BBB' corporate credit rating on Fremont, Calif.-based Lam Research Corp. The outlook is stable. The rating reflects our view that despite the merger termination with KLA-Tencor Corp., Lam will preserve its
