6x at the end of the June 2012 quarter, up from 2

buy canada goose jacket S assigns ‘BB’ rtg to Amkor sr unsecd nts recovery

canadian goose jacket The rating on Amkor reflects Standard Poor expectation Canada Goose sale that canadian goose jacket the semiconductor packaging and test Canada Goose Parka provider will preserve its financial risk profile and its competitive position through the typical industry cycle. The semiconductor industry has experienced a decline from its cyclical peak in 2010 and near term growth is expected to be modest, or in the low Canada Goose online single digit percentage area on a year over year basis. We view the company canada goose uk shop business risk profile as as we consider its operations more volatile than the broader semiconductor industry and with high capital expenditure requirements. We view the company financial risk profile canada goose clearance as significant, with debt to EBITDA of 2.8x as of June 30, 2012, pro forma for the debt issuance, but buy canada goose jacket cheap it is subject to considerable fluctuation over an industry cycle, and with a negative free operating cash canada goose flow (FOCF) of cheap Canada Goose $49 million for the 12 months ended June 30, 2012.We expect that the company revenue in the second half of 2012 will be flat to up modestly by a low single digit percentage on a year over year basis. Demand for smartphones and tablets continues to build, albeit at a slower pace than originally anticipated, and the networking, computing, industrial, and consumer end markets build inventory to meet the demands of new consumer and enterprise product refreshes.We expect Amkor margins https://www.alifeoutofdebt.com to increase canada goose uk outlet from current levels over the coming quarters as the company capacity utilization improves, despite headwinds from higher canada goose clearance sale input costs and pricing erosion. The company intends to use the proceeds from the $300 million senior unsecured notes issuance to repay approximately $225 million of outstanding foreign debt, using the remaining amount for general corporate purposes. As such, and pro forma for the note issuance, we expect debt to EBITDA to increase to the 2.8x area, from 2.6x at June 30, 2012. Our outlook allows capacity for debt leverage up to about 4x within the current rating.Amkor is a global supplier of outsourced semiconductor packaging and testing services. We view Amkor business risk profile as weak, primarily reflecting aggressive competition, rapid technology evolution, and high capital expenditures to support anticipated customer requirements. The company strong customer base, good market position, and high barriers to entry partially offset canada goose coats those factors.The outsourced semiconductor packaging and test market is very Canada Goose Coats On Sale competitive, with many players and almost all packaging and test services conducted in Asia, where labor costs canada goose online are lower. Amkor competes not only against top outsourced packaging and test providers, but also with integrated device manufacturers that opt to keep their back end production in house. The demand for higher performance packages translates to greater capital expenditure requirements for outsourced service providers such canada goose store as Amkor but provides high barriers to entry. Partly offsetting these risks is Amkor good market position: Canada Goose Online The company customers include many of the world largest semiconductor canada goose coats on sale companies and it is one of four major packaging and test providers that, in aggregate, make up about 50% of the market.We view the company financial risk profile as significant. Revenues for the 12 months ended June 2012, at about $2.8 billion, were down 4.6% from the year ago period because of global economic headwinds and the uk canada goose uncertain outlook in key consumer, industrial and networking end markets. The communications end market, with strong growth coming from smartphones and tablets, Canada Goose Outlet partially offsets the weakness experienced in other end markets. Adjusted EBITDA generation was about $550 million for the 12 months ended June 30, 2012 (about 20.0% of revenue), down from about $658 million in the year earlier period (22.7% of revenue), primarily the result of foreign currency effects, increased raw material costs and lower capacity utilization uk canada goose outlet rates. Adjusted debt to EBITDA was about buy canada goose jacket 2.6x at the end of the June 2012 quarter, up from 2.1x a year ago, and will increase to approximately 2.8x as a result of the $300 million note issuance. We expect considerable fluctuation in the company financial profile over a cycle, as occurred in September 2009, when Amkor leverage and funds from operations (FFO) to debt deteriorated to 3.6x and 22%, respectively, and subsequently improved to 1.9x and 45%, respectively, in March 2011.Given our expectation for higher input costs, and still low capacity utilization, we believe operating margin will remain lower in calendar year 2012 than a year ago. Cash sources include cash balances of $351 million and a $150 cheap canada goose uk million revolving line of credit (due June 2017 as of the quarter ended June 30, 2012). For the next 12 months, canada goose factory sale cash uses should include some investment in working capital, and capital spending of about $500 million.Additional relevant factors of Amkor liquidity, in canada goose black friday sale our view, Canada Goose Jackets are as follows: We expect sources of liquidity will cover uses by 1.2x or more and that net sources would be positive even with a 50% drop in EBITDA.We could lower the rating, however, if leverage were to deviate sharply from our canada goose uk black friday expectations, such that it approaches 4x. Such an increase could be the result of an escalation of the competitive environment and sustained aggressive pricing or an unexpected severe demand decline, which would place significant pressure on margins and EBITDA generation. It could also arise from a shift in financial policies that allowed for significant debt financed acquisitions or share repurchases.