Moody's lifts SK E&S view to stable

Moody's Investors Service said it revised to stable from negative the outlook on the Baa2 issuer and Ba1 preferred stock ratings of SK E&S Co. Ltd. and affirmed the ratings.

The outlook change reflects a material reduction in the ramp-up risk associated with SK E&S' new power and cogeneration plants, Moody's said, and the cash proceeds of 678 billion in Korean won from the issuance of new shares, which will improve its credit metrics.

The company's lower exposure to execution risk, given the solid operational track record of the new plants, will bolster the company's credit quality to a level consistent with a Baa2 rating, the agency said.

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