The long-term ratings on Hynix Semiconductor Inc. and its subsidiary Hynix Semiconductor Manufacturing America Inc. (HSMA) were lowered on Aug. 24, 2001. The ratings remain on CreditWatch, where they were placed with negative implications on Aug. 21, 2001. The downgrades were prompted by reports that Korea Exchange Bank, Hynix's main creditor bank, together with other creditor banks, is considering debt-for-equity swaps and various other types of financial support for the company. Should the new financial support package include a debt-for-equity swap or any other terms that are detrimental to some classes of creditors, the issuer credit ratings on Hynix and HSMA will be revised to 'SD' (selective default). The issue rating on HSMA's notes due 2004 and 2007 may be
