S&P lowers SK Broadband view to negative

S&P said it revised the outlook on SK Broadband Co. Ltd. to negative from stable.

The agency also said it affirmed the company's A- long-term issuer credit rating and A- long-term issue rating on its senior unsecured bonds.

The outlook revision reflects the revision in the outlook on SK Telecom Co. Ltd., S&P explained.

S&P said it believes SK Broadband's credit quality is tied to that of SK Telecom, given that SK Broadband is a core subsidiary of the group.

The negative outlook reflects an expectation that the company's operating performance will remain subdued over the next one- to two-years because of intense competition with planned 5G rollouts, wireless tariff discounts and continued losses from its e-commerce business, the agency said.

S&P said it believes SK Telecom's financial policy has become more aggressive over the past 12 months.

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