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Technology Stocks : Amkor Technology Inc (AMKR) -- Ignore unavailable to you. Want to Upgrade?

To: Artslaw who wrote (447)	11/30/1999 3:24:00 AM
From: tech101	Read Replies (1) \| Respond to of 1056

No. That is just a possible routine adjustment on debt rating when a significant purchase is made. When you buy a house, if you make a 20% down payment, you get 7.5% of mortgage, and you don't have to buy PMI. However, if you only put 5-10% down, you have to pay higher interest rate (may be 9-9.5% on a partial second mortgage) and/or buy PMI, no matter how good your credit history has been. This is just kind of protection to the lender. For business, when you borrow more, the debt may get downgraded naturally. That just means you get higher interest rate. Nothing more. A minor rating change by Moody/S&P rarely makes big impact on stock price under normal circumstances.