The major rating factors for Hynix Semiconductor Inc. are as follows: Planned sale of its non-memory business. Completion of debt reorganization plan. 15% global market share. Fragile financial profile. Limited access to liquidity. Need for high capital investments. The rating on Hynix reflects the company's limited access to liquidity, making it extremely challenging to compete in the notoriously cyclical and capital-intensive semiconductor business, particularly in commodity-like DRAM products, from which it derives the bulk of its revenue. The rating also incorporates Hynix's future need for high capital investment to upgrade its facilities in order to maintain its competitiveness against its global peers. The company's fragile financial profile constrains the rating. Hynix has recorded net losses for the past three consecutive
