Fitch revises ASE, unit view to positive

Fitch Ratings said it revised the outlook on ASE Technology Holding Co., Ltd. (ASEH) and wholly owned subsidiary Advanced Semiconductor Engineering, Inc. (ASE) to positive from stable, and affirmed their issuer default and senior unsecured ratings at BBB.

The agency also revised the outlook on the companies' national long-term ratings to positive from stable, and affirmed the ratings at A+(twn).

“The positive outlook reflects our expectations of robust long-term growth for the global semiconductor industry, ASEH continuing to benefit from increasing integrated device manufacturers (IDM) outsourcing and growing demand for artificial intelligence (AI), Fitch said in a press release.

The agency said it expects a richer recovery in ASEH's profitability in the next 12-18 months, its EBITDA leverage to stay below 1.8x over the next few years, and its cash flow from operations-capex/debt ratio to top 20% over the same period. Fitch also estimates ASEH’s annual pre-dividend free cash flow will climb to over $1 billion.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.