The ratings on Korea-based Hynix Semiconductor Inc. reflect the severe pricing pressures and the cyclical, capital-intensive nature of the commodity DRAM industry, from which the company derives the bulk of its revenues. However, these industry risks are mitigated by the company's strong market share and good cost position in the DRAM industry, as well as its improving market position in the NAND flash industry. Hynix has improved its market position in DRAM to second globally, and NAND flash to third globally, over the past few years, backed by its strong design capabilities and proven process technologies. The company posted strong operating performance through 2006, and its cash position has improved, indicating a recovery in its ability to make needed capital
