Moody’s lifts SK Global view to positive

Moody’s Investors Service said it affirmed the Baa2 ratings for SK Innovation Co. Ltd., SK Global Chemical Co., Ltd. and SK Global Chemical Investment Hong Kong Ltd.

The agency also said it changed the outlook on all of the ratings to positive from stable.

The outlook revision reflects a view that the company’s financial profile will improve significantly in 2016, Moody’s said, and stay strong for its current Baa2 ratings level over the next two years because robust earnings and cash flows.

This should lead to a continued decline in debt, the agency said.

The robust earnings were partly attributable to its improved competitiveness, aided by significant investments it made in its petrochemical and refining operations during 2012 through 2014, Moody’s added.

These strengths are counterbalanced by the company’s high exposure to inherently cyclical market conditions, which leads to significant volatility in its operating results, the agency said.

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