S&P rates STATS ChipPAC bonds BB

Standard & Poor's said it assigned its BB foreign currency rating to the proposed senior unsecured bonds to be issued by STATS ChipPAC Ltd. (BB/stable/--).

"The proposed bond issuance is not expected to have a significant impact on the credit quality of STATS ChipPAC, as the majority of the proceeds will be used to refinance existing debts," said S&P credit analyst Erly Witoyo.

S&P said the rating on the company reflects its exposure to the highly cyclical semiconductor industry, which faces rapid technological change and frequent overcapacity and its weak financial profile.

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