Hynix to launch 352 bln won rights offering next month

(ATTN: ADDS details, closing stock price in paras 2-3, S&P's rating cut starting
para 6)
SEOUL, Dec. 26 (Yonhap) -- Hynix Semiconductor Inc., the world's second-largest
maker of computer memory chips, said Friday it plans to launch a rights offering
worth 351.6 billion won (US$269.4 million) in January to beef up its capital.
To raise the money, Hynix will sell 60 million new shares for 5,860 won apiece on
Jan. 13, the company said in a regulatory filing. The new shares will be listed
on the stock market on Jan. 30.
The announcement was made after the stock market was closed. Shares of Hynix rose
3.13 percent to 6,930 won on the Seoul bourse.
Last week, creditors of Hynix agreed to provide 800 billion won of fresh capital
to the loss-making chipmaker.
The new fund consists of 500 billion won in new loans and 300 billion won that
will be used to buy new shares of Hynix, according to Korea Exchange Bank, one of
the creditors.
Separately, rating agency Standard and Poor's downgraded Hynix's credit rating on
the same day, citing the chipmaker's "rapid deterioration in financial risk
profile."
The outlook for the credit rating, which is used by creditors to determine the
cost of new debt, was negative, S&P said in a statement.
Hynix's long-term ratings were cut to "B+" from "BB-," according to the statement.
"The downgrade reflects our belief that the company will suffer significant
losses over the next three to four quarters, including the fourth quarter of
fiscal 2008, due to the severe market conditions," the rating agency said.
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