On May 25, Fitch Ratings reported that Kioxia has demonstrated stronger resilience amid fluctuations in the NAND flash memory market, while maintaining financial flexibility and continuing to invest in technology and production capacity. The report noted that Kioxia's balance sheet has been strengthened, thanks to improved profitability, enhanced cash generation, reduced financing costs following debt refinancing, and deleveraging efforts. Fitch particularly highlighted the strong demand for AI-driven enterprise-grade solid-state drives (SSDs), with the proportion of such products in the company's sales expected to continue rising as data center demand expands. However, Kioxia's profitability remains highly sensitive to NAND flash memory pricing and changes in supply and demand, and subsequent rating actions will depend on whether the cyclical volatility in the memory chip market diminishes. Fitch has upgraded Kioxia's Issuer Default Rating from 'BB+' to 'BBB-', with a stable outlook.