Moody's: SK Energy unchanged

Moody's Investors Service said it sees no impact on the Baa3 senior unsecured bond rating of SK Energy Co. Ltd. following news that its board of directors approves a corporate reorganization plan.

The board approved the company's plan to spin off its refining and chemical businesses into two separate subsidiaries by Jan.1, 2011, the agency said.

Although a large portion of debt will be allocated to subsidiaries after the spin-off, structural subordination risk for existing debt holders at SK Energy will be mitigated by joint-liability agreements, Moody's said.

The spin-off of the refining and chemical operations by SK Energy does not immediately impact its control over the strategies and cash flow of these two major earnings contributors, Moody's said.

Over the longer term, any further plans for a partial sell-down or initial public offering could affect the company's access to the resources of the subsidiaries, which may impact its credit profile, the agency said.

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