Moody’s bumps Amkor Technology debt ratings up 2 notches, says outlook is stable
By APMonday, March 22, 2010
Moody’s upgrades Amkor Technology debt ratings
NEW YORK — Moody’s Investors Services upgrading its ratings on Amkor Technology Inc. Monday, citing the chip assembly and testing services company’s stronger offerings and lower debt.
The ratings service upgraded Amkor’s corporate family and probability of default, and Amkor’s senior unsecured notes, to “Ba3″ from “B2.” That’s two notches higher on Moody’s ratings scale, but still in the “junk” category.
Moody’s also said Amkor’s outlook is stable.
The moves conclude its review of Amkor’s business for possible upgrades, a process that started in January. The ratings service said its upgrades reflect improvements in Amkor’s business — in particular, its broader portfolio of packaging solutions and more profitable mix of products and services.
Moody’s also noted that Amkor’s debt is lower.
“During the recession, Amkor aggressively reduced costs and improved working capital efficiency, which enabled margins to return quickly to pre-recession levels as the economy recovered,” Moody’s analyst Gregory Fraser wrote. That allowed the company to pay down debt, he wrote, and helped it weather the downturn better than competitors.
Moody’s also raised Amkor’s senior subordinated notes to “B2″ from “Caa1″ and its speculative grade liquidity rating to “SGL-1″ from “SGL-2.”
