NICE Ratings Downgrades Credit Ratings of Four Refiners Including SK Innovation to 'Negative'

[Asia Economy Reporter Won Dara] NICE Credit Rating has downgraded the long-term credit rating outlook of four refiners, SK Innovation, SK Energy, SK Incheon Petrochem, and S-Oil, from 'Stable' to 'Negative.'

On the 1st, NICE Credit Rating explained the reason for lowering the rating outlook, stating, "These refiners are expected to continue facing significant financial burdens along with poor performance for the time being after large operating losses in the first quarter of this year."

It added, "Although a recovery in performance is expected due to the resumption of economic activities in major countries following lockdown measures caused by the spread of COVID-19 and a partial rebound in global oil prices, it will be difficult to turn an operating profit on an annual basis this year."

Meanwhile, NICE Credit Rating maintained the existing outlook for GS Caltex and Hyundai Oilbank.

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