Fitch cuts SK Telecom, SK Broadband

Fitch Ratings said it downgraded SK Telecom Co., Ltd. and SK Broadband Co., Ltd.'s ratings and removed them from Rating Watch negative following the completion of SK Telecom's acquisition of 21% of Hynix Semiconductors Inc. (BB/stable).

The outlook is stable.

"Following the acquisition of Hynix, the downgrades reflect SKT's weaker financial profile and higher business risk," Alvin Lim, an associate director at Fitch, said in a statement.

"The transaction indicates [the company's] willingness to invest some of its strong free cash flow generation in businesses with a weaker credit profile."

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