Moody's upgrades SK Hynix

Moody's Investors Service said it upgraded SK Hynix Inc.'s issuer rating to Baa2 from Baa3.

The outlook is stable.

The upgrades reflect SK Hynix's improving business profile, as well as an expectation that SK Hynix will maintain robust profitability and strong financial metrics through the industry cycles, Moody's said.

The agency said it expects SK Hynix to gradually enhance its competitiveness in the NAND flash business over the next one- to two-years as it accelerates its migration to high-density 3D NAND products and increases its presence in high-end product categories.

SK Hynix is expected to maintain its solid position as the second-largest supplier of dynamic random access memory (DRAM) by revenue globally, Moody's added.

This strength partly mitigates the company's heavy reliance on this segment for profit generation, the agency said.

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