Moody’s lowers SK E&S

Moody’s Investors Service said it downgraded SK E&S Co. Ltd.’s issuer rating to Baa2 from Baa1 and preferred stock rating to Ba1 from Baa3.

The outlook is negative.

The downgrades conclude a review of the company’s ratings that began in Nov. 4, 2015. The review was prompted by the company’s slow progress in de-leveraging, Moody’s said.

The downgrades also consider an expectation that the delay in implementing de-leveraging measures will hold back recovery in the company’s credit metrics over the next one to three years amid rising debt to fund capital expenditure and margin pressure, the agency said.

Despite these expected improvements, the company’s credit metrics will remain weak for the Baa2 rating amid a challenging operating environment, which led to the negative outlook, Moody’s said.

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