Lam Research Corp, Fremont, California builder of semiconductor capital equipment, has duly won a debt rating upgrade from Standard & Poor’s Corp, which lifted Lam’s subordinated debt to single-B from B-minus. The rating outlook is positive and total debt affected is about $108m. The ratings agency cited Lam’s improving marketing position and evolving product line, supported by enhanced liquidity resulting from the recent sale of $100m of new shares. A good niche position in the semiconductor equipment market and conservative financial practices offset Lam’s limited free cash generating ability, narrow business focus and the technology-intensive nature of its marketplace, it concluded.
