Research Update: Lam Research Corp. ?BB+? Corporate Credit Rating On CreditWatch Positive On Announced Acquisition Of Novellus Systems Dec 11

Standard & Poors, December 2011

Abstract
U.S. semiconductor manufacturing equipment provider Lam Research has announced that it will acquire Novellus Systems Inc. in a stock-for-stock transaction valued at about $3.3 billion. We expect that Lam Research's business risk profile will improve as a result of materially better product diversity. Pro forma leverage will rise only moderately despite the acquisition and significant planned share repurchases. We are placing all our ratings on Lam Research, including the 'BB+' corporate credit rating, on CreditWatch with positive implications. On Dec. 15, 2011, Standard & Poor's Ratings Services placed all of its ratings on Lam Research Corp., including the 'BB+' corporate credit rating, on CreditWatch with positive implications. The CreditWatch placement follows the announcement that Lam Research will acquire Novellus Systems...

Companies mentioned in this report are: Lam Research Corp.
Action: On CreditWatch:Developing
Action: On CreditWatch:Positive

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

Lam Research Corp.

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