Taiwan Ratings Corp. (“Taiwan Ratings”) has assigned SAS a long-term issuer credit rating of “twAA-“, with a Stable Outlook and a short-term issuer credit rating of “twA-1+” on August 22, 2024.

 

In Taiwan Ratings’ view, a good position in the global semiconductor wafer market through subsidiary GlobalWafers Co. Ltd. and strong profitability from semiconductor wafer sales underpins SAS’ satisfactory competitive position. SAS could maintain robust profitability in 2024-2025 with the ratio of debt to EBITDA at 1.1x-1.2x along with a recovery in the global semiconductor market, despite materially higher capex needs.

 

In Taiwan Ratings’ view, SAS has a sound relationship with banks and a generally satisfactory standing in Taiwan’s credit markets. This is indicated by the company’s relatively low financing cost and multiple funding channels. Taiwan Ratings also believe that SAS’ steady cash flow generation and sizeable cash on hand will continue to support its liquidity.