Moody's moves SK Hynix view to negative

Moody's Investors Service said it revised SK Hynix Inc.'s outlook to negative from stable and affirmed the company's Baa2 issuer and senior unsecured ratings.

"The revision of the outlook to negative mainly reflects an increasing uncertainty over SK Hynix's ability to recover its financial metrics and capital structure to last year's levels, as we expect the company to incur significantly higher debt this year than previously thought, amid an unprecedented cyclical downturn in the global memory chip industry," said Sean Hwang, a Moody's assistant vice president and analyst, in a press release.

Citing the downtown in the market and supply gut, Moody’s said it now forecasts SK Hynix’s adjusted EBITDA to plunge to about KRW 5 trillion in 2023 from KRW 21 trillion in 2022.

"Nonetheless, today's rating affirmation recognizes SK Hynix's intention to reduce debt once industry fundamentals rebound," Hwang added.

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