Moody's may up Hanaro Telecom

Moody's Investors Service said it placed Hanaro Telecom's Ba2 corporate family rating and senior unsecured bond rating on review for possible upgrade.

The review has been prompted by news that SK Telecom Co. Ltd. (rated A2 with positive view) is the preferred bidder for a 39% stake in the company to be acquired from the AIG/Newbridge led consortium.

Given SK Telecom's dominance of the cellular sector, Moody's said it views this acquisition as a long-term strategic play that will facilitate the bundling of products across fixed and wireless media and allow Hanaro to compete more effectively against KT Corp.

Furthermore, SK Telecom's strong track record of performance and conservative financial profile should provide support to Hanaro's credit metrics as well as create ongoing synergies between the two companies, the agency said.

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