S&P: SK Innovation to stable

Standard & Poor's said it revised to stable from negative the outlook on the BBB long-term corporate credit rating on SK Innovation Co. Ltd., reflecting the improving profitability and financial risk profile of the company.

The agency also said it affirmed its long-term corporate credit and debt ratings.

The outlook revision reflects improving profitability as a result of a rise in oil refining margins, the agency said.

S&P also said it expects solid refining margins over the next 18 months to contribute to strong operating cash flow and allow SK Innovation to reduce debt.

The ratings reflect the company's leading position in Korea's oil refining and marketing industry and its integrated business portfolio, the agency said.

The rating is constrained by the cyclical nature of the company's main businesses and its vulnerability to oil and currency fluctuations, S&P added.

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