Standard&Poor's Ratings Services derives its 'CCC+' long-term corporate credit rating on Korea-based semiconductor designer and manufacturer MagnaChip Semiconductor Corp. from the application of our "Criteria For Assigning 'CCC+', 'CCC', 'CCC-', And 'CC' Ratings." Our assessment mainly reflects the company's declining cash balance and our view of its financial commitments, which appear unsustainable over the long term. Relatively weak position in global semiconductor markets Low utilization rate in fabrication business and continued operating losses Exposure to cyclical semiconductor industry High debt we consider unsustainable over the long term A declining cash balance Uncertainty over legal disputes The negative outlook reflects our expectation that MagnaChip will continue to make operating losses with substantial deficits in free operating cash flow over
