SK Magic, Credit Rating Outlooks Upgraded Consecutively by Korea's Top 3 Credit Rating Agencies

Strengthening Business Stability with Increased Account Numbers, Financial Structure Improvement Expected as SK Group Affiliate

SK Magic announced on the 23rd that its credit rating outlook has been consecutively upgraded this year by a leading domestic credit rating agency. The photo shows the exterior of SK Magic's Hwaseong factory. Photo by SK Magic

[Asia Economy Reporter Kim Heeyoon] SK Magic announced on the 23rd that its credit rating outlook has been consecutively upgraded this year by leading domestic credit rating agencies.

On the 19th, Korea Ratings upgraded SK Magic's unsecured bond rating outlook from A0 (Stable) to A0 (Positive). Prior to this, in June and September, Korea Credit Rating and NICE Investors Service also upgraded SK Magic's credit rating from A0 (Stable) to A0 (Positive).

Korea Ratings explained that the recent upgrade of SK Magic's rating outlook was positively evaluated due to the realization of economies of scale driven by an increase in rental business accounts, strengthened business stability, and excellent liquidity management capabilities.

SK Magic has maintained growth despite the impact of COVID-19. As of the third quarter of this year, cumulative sales reached 762.5 billion KRW, and operating profit was 65.7 billion KRW, achieving 87% of last year's annual sales of 875.7 billion KRW. Additionally, the cumulative rental accounts reached 1.96 million, and SK Magic expects to surpass both this year's sales target of 1 trillion KRW and cumulative accounts of 2 million simultaneously.

According to SK Magic, since joining the SK Group in 2016, it plans to improve its financial structure to a level that can supplement its own cash flow, including through an IPO (Initial Public Offering), based on its growth momentum. Since 2018, it has selected Mirae Asset Daewoo, KB Securities, and JP Morgan as lead underwriters and is preparing for the IPO.

An SK Magic official stated, "The recent upgrade in the credit rating outlook reflects the market's recognition of the company's growth potential and profitability," adding, "We will continue to secure new growth engines and strive to meet investors' expectations."

This content was produced with the assistance of AI translation services.