S&P lowers SK Hynix view to stable

S&P said it revised the outlook on SK Hynix Inc. to stable from positive and affirmed its BBB- long-term issuer credit rating on the company.

With demand slowdown amid a weakening macro economy and escalating trade tensions, the agency said it expects SK Hynix's operations in 2019 to weaken materially beyond previous assumptions.

Despite an expectation of lower capital spending, S&P said it anticipates the semiconductor memory manufacturer's debt to increase substantially over the next 24 months.

The stable outlook reflects an expectation that SK Hynix will maintain a steady debt-to-EBTIDA ratio of 0.6x to 1.0x over the next two years despite its deteriorating operating profitability, the agency said.

This is mainly due to the company's firm position as the second-largest global dynamic random-access memory (DRAM) manufacturer, the agency said.

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