Moody’s gives SK Hynix notes Baa2

Moody’s Investors Service said it assigned a Baa2 rating to SK Hynix Inc.’s planned senior unsecured notes.

“SK Hynix’s Baa2 ratings reflect its strong position as the world’s second-largest memory chip producer and the likelihood of support from its largest shareholder, SK Telecom Co., Ltd., in case of need, which results in a one-notch rating uplift from its stand-alone credit quality,” said Sean Hwang, a Moody’s assistant vice president and analyst.

“At the same time, the ratings also take into consideration SK Hynix’s high reliance on dynamic random-access memory (DRAM) chips for profit generation and the high cyclicality and sizeable investment requirements inherent to the memory chip business,” added Hwang.

SK Hynix will use the proceeds for general corporate purposes, including the repayment of outstanding borrowings and capital expenditures. The green bond tranche will be used for eligible projects that meet SK Hynix’s green financing framework.

The outlook is negative.

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