S&P gives SK Energy, bonds BBB-

Standard & Poor's said it assigned its BBB- long-term corporate credit rating to SK Energy Co. Ltd., a newly established operating company that will take over all oil-related business from SK Corp. as a result of the company's shift to a holding-company structure and its split into two entities.

S&P said it also assigned its BBB- rating to SK Energy's senior unsecured $300 million bonds, which have been transferred from SK Corp.

The rating on SK Energy reflects the company's leading position in Korea's downstream petroleum market, its extensive distribution and marketing network and favorable operating conditions with limited competition in the domestic market, the agency said.

However, the rating is weighed down by the track record of SK Group's weak corporate governance standards, shown by its past bailouts of group companies unrelated to its core oil-refining business, the agency added.

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