Moody's affirms SK Broadband

Moody's Investors Service said it affirmed SK Broadband Co. Ltd.'s Baa3 corporate family and senior unsecured bond ratings.

The outlook remains negative.

The affirmation is in response to the company's announced KRW300 billion rights issue, the proceeds of which will be used to strengthen the financial standing of the company and provide it with the financial resources with which to compete effectively, Moody's said.

The affirmation reflects an expectation that the one-off equity injection will not materially improve its financial profile, which remains weak for the rating level with debt-to-EBITDA ratio in excess of 4x, the agency said.

There is no strong indication that the company's operating performance will improve post equity injection, Moody's said.

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