S&P rates SK Broadband bonds BBB+

Standard & Poor's said it assigned its BBB+ long-term debt rating to SK Broadband Co. Ltd.'s (BBB+/stable/--) proposed senior unsecured bonds.

The company plans to use the proceeds for general corporate purposes, including refinancing.

S&P said its rating on SK Broadband reflects the company's strengthening operational and strategic ties to parent company SK Telecom Co. Ltd. (A-/stable/--), its good market position in fixed-line telecommunications in Korea and its stable operating and financial performance.

However, limited growth prospects in the already saturated domestic fixed-line voice and broadband markets, relatively low profitability and marginal free cash flow temper these strengths, the agency said.

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