We expect MagnaChip's cash on hand to decline substantially over the next one to two years, mainly due to weak profitability in its foundry business. We expect MagnaChip to face rising pressure on liquidity over the next 12 to 24 months, although it may not face near-term credit or payment risk. We are lowering our long-term corporate credit and debt ratings on MagnaChip to 'CCC+' from 'B-'. The negative outlook reflects our expectation that the company will continue to make operating losses with substantial deficits in free operating cash flow over the next several quarters. On June 15, 2015, Standard&Poor's Ratings Services lowered to 'CCC+' from 'B-' its long-term corporate credit and debt ratings on Korea-based analog and
