The rating on Korea-based Hynix Semiconductor Inc. (Hynix; B+/Negative/--) reflects severe pricing pressures, the company's decreasing liquidity and high leverage, and rapid technology advancements. These factors are offset by the company's strong market share in the global dynamic random access memory (DRAM) industry, strong technology positions, and good operational efficiency. At about 21%, Hynix had the second-largest market share in the global DRAM industry at the end of the fourth quarter of 2008 (ended Dec. 31, 2008), following industry leader Samsung Electronics Co. Ltd. (Samsung Electronics; A/Stable/A-1), which had about 30%. Hynix is also the fourth-largest NAND flash memory supplier, with about an 8% market share in the same period. The company generated 76% and 24% of its revenue during
