S&P Upgrades S-Oil's International Credit Rating from 'Stable' to 'Positive'

Record High Operating Profit of 2.1 Trillion Last Year

"Securing Financial Capacity to Withstand Market Volatility"

[Asia Economy Reporter Moon Chaeseok] S-Oil announced on the 19th that the global credit rating agency Standard & Poor's (S&P) has upgraded its international credit rating outlook from 'Stable' to 'Positive'. The long-term credit rating for S-Oil was maintained at 'BBB'.

S&P analyzed, "S-Oil has achieved excellent operating performance and is expected to secure sufficient financial capacity to prepare for the next investment cycle and industry volatility based on the recovery of spreads in its main products."

The possibility of a credit rating upgrade was also left open. S&P stated, "If S-Oil's debt-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio remains below 3.5 times for a considerable period, the rating can be raised." Additionally, conditions include ▲ maintaining solid spreads and profitability ▲ establishing prudent capital expenditure plans ▲ reducing working capital volatility ▲ lowering reliance on short-term borrowings ▲ improving liquidity.

Last year, S-Oil posted an operating profit of 2.1 trillion KRW, the largest in its history. In the first quarter of this year, it also recorded a quarterly operating profit of 1.332 trillion KRW, the highest ever on a quarterly basis.

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