SunEdison Semi (SEMI) Ratings Placed on CreditWatch Developing by S&P

Standard & Poor's Ratings Services said it placed its 'B-' rating on SunEdison Semi (Nasdaq: SEMI), as well as the 'B' rating on the company's senior secured debt, on CreditWatch with developing implications.

"The CreditWatch placement is based on SunEdison Semiconductor's Feb. 18, 2016 announcement that its board of directors has authorized a review of strategic alternatives following receipt of unsolicited indications of interest from potential acquirers," said Standard & Poor's credit analyst James Thomas.

The company has not disclosed the identities of the parties who have expressed interest, and we could raise, lower, or affirm the current rating in the event of a sale or merger depending on the business and financial risk profiles of the combined entity.

We note that all of SunEdison's senior secured credit facilities have change of control provisions, which would likely be triggered in the event of a major transaction.

We will monitor developments related to the announced strategic review, and will resolve the CreditWatch listing when we have additional clarity around any plans to sell the company or other changes to SunEdison's corporate strategy or capital structure.

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