Moody’s changes SK E&S view

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

At the same time, Moody's affirmed the Baa2 issuer and Ba1 preferred stock ratings.

“The change in outlook reflects SK E&S' weakening financial buffer stemming from the announced high dividend payout and likely increase in debt to fund potential growth in capital spending,” Mic Kang, Moody's vice president and senior credit officer, said in a news release.

“The company's use of a large internal cash source for dividends rather than debt reduction means a weaker visibility on its deleveraging strategy compared to our previous expectation.”

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