We expect Korea-based MagnaChip to improve its operating and financial performances over the next one to two years, primarily owing to steady demand growth in its major businesses and ongoing cost-reduction efforts. In our view, MagnaChip's improving internal cash flow generation has increased its capacity to manage its highly leveraged capital structure with better access to capital markets, though the company is still somewhat vulnerable to market volatility. We are raising our long-term corporate credit and debt ratings on MagnaChip to 'B-' from 'CCC+'. The stable outlook reflects our expectation that the company will further recover operating cash flows, albeit at a modest pace, over the next one to two years mainly due to demand growth in its display solution
