Global credit appraisers said Tuesday the outlook for South Korea's No. 2 chipmaker SK hynix Inc. will not be affected by the latest deal to acquire stakes in Toshbia Corp.'s memory business.

A global consortium comprising participants from South Korea, the United States and Japan clinched an agreement last month to buy the full stake in Toshiba's memory business. The deal is estimated to be worth some 2 trillion yen (US$17.4 billion).

The firms also include Bain Capital, Apple Inc. and a handful of other tech players.

Standard & Poor's Ratings said the agreement is expected to have only a limited impact on its rating as the computer chip manufacturer already boasts sound financial health.

"This is mainly because of SK Hynix's strong recent operating performance and good free cash flow on the back of a favorable global memory chip market," the appraiser said.

"The company's net cash position, with cash holdings of 5.1 trillion won ($4.4 billion) as of June 30, 2017, should also support its credit metrics, in our view," it added.

"Some synergies could emerge in the longer term, including strategic collaborations in technology or raising of entry barriers in the memory chip industry. However, such benefits are uncertain, in our opinion," it added.

SK hynix's board of directors earlier approved the plan to inject 4 trillion won (US$3.5 billion) in the deal.

Of the investment, 1.3 trillion won, or 129 billion yen, will be used to buy Toshiba's convertible bonds, which will help the firm secure a solid stake in Toshiba's memory business. It also plans to chip in the remaining 2.7 trillion won in a fund established by Bain Capital as a limited partner.

Moody's, another global rating agency, echoed the view, claiming SK hynix's financial condition is strong enough to manage the deal.

"SK hynix will likely have only limited -- if any -- access to Toshiba semiconductor's technology and cash flows. However, the acquisition represents a step toward consolidation of the NAND flash memory market, which is a long-term positive," the agency said in a report.

"However, several hurdles exist, including competition law approvals in key jurisdictions, as well as legal disputes between Toshiba and Western Digital Corp., which share a NAND joint venture," Moody's added. (Yonhap)

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