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STATS ChipPAC Ltd outlook revised to negative; 'BB' rating affirmed

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Standard & Poor's Ratings Services said today that it had revised the outlook on STATS ChipPAC Ltd to negative from stable.

[SINGAPORE] Standard & Poor's Ratings Services said today that it had revised the outlook on STATS ChipPAC Ltd to negative from stable.

"In line with the outlook revision, we lowered our long-term ASEAN regional scale rating on the company to 'axBB+' from 'axBBB-'. At the same time, we affirmed the 'BB' long-term corporate credit rating on STATS ChipPAC and our 'BB' issue rating on the company's outstanding senior unsecured notes," it said.

"We revised the outlook to reflect our view that STATS ChipPAC will find it more difficult than we previously anticipated to improve its key financial ratios over the next 12 months, given the weaker industry environment," said Standard & Poor's credit analyst Katsuyuki Nakai.

"In addition, we believe that the pro forma credit profile of China-based Jiangsu Changjiang Electronics Technology Co Ltd (JCET) following its acquisition of STATS ChipPAC could be weaker than we previously expected and remain under downward pressure."

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