On October 13, S&P Global Ratings raised Kioxia Holdings’ long-term issuer credit rating one notch, to BBB from BBB-, and assigned a positive outlook.
S&P cited an exceptionally strong earnings forecast, which it expects to significantly exceed its previous assumptions over the next two years. Robust demand for NAND flash memory and solid-state drives (SSDs), driven by surging investment in artificial intelligence and data centers, is supporting the outlook.
S&P said the growing use of multiyear long-term supply agreements in the AI sector could also reduce earnings volatility, a longstanding challenge for the memory industry.
The agency expects Kioxia’s EBITDA to reach ¥7 trillion to ¥8 trillion for the fiscal year ending March 2027.