IPhone Drives Hynix Revival as Default Risk Drops: Korea Markets
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Demand for the chips that drive Apple Inc. iPhones and Sony Corp. electronics helped cut bond risk for SK Hynix Inc. by the most of any Korean company, putting it on course for an investment-grade rating.
The cost to protect notes of SK Hynix, which flirted with insolvency throughout much of the last decade, fell 78 basis points this year to 271 yesterday. The company now has a 0.21 percent chance of non-payment in the coming year, from as high as 0.85 percent in September 2011, moving out of the junk bond category, according to Bloomberg’s default-risk model.