Moody’s downgrades SK Innovation

Moody's Investors Service said it downgraded SK Innovation Co. Ltd.'s issuer and senior unsecured ratings to Baa3 from Baa2 as well as SK Global Chemical Co., Ltd.’s rating to Baa3. The outlook remains negative.

"The one-notch downgrade of SKI's ratings and the negative outlook reflect our expectation that the company's financial profile will remain weak over 2021-22, despite an expected improvement from the very weak level in 2020, because of prolonged softness in its core businesses as well as elevated capital spending," said Wan Hee Yoo, a Moody’s vice president and senior credit officer, in a press release.

The Baa3 ratings reflect SK Innovation’s underlying credit strength and a one-notch uplift based on Moody's assessment of strong institutional support from the Korean government (Aa2 stable), to ensure a stable oil supply for the country's highly industrialized economy, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.