Moody's Upgrades SK Innovation's Credit Rating Outlook to 'Stable'

Image courtesy of SK Innovation

International credit rating agency Moody's announced on the 16th that it will maintain SK Innovation's corporate credit rating at 'Baa3'. The rating outlook was upgraded from 'negative' to 'stable'.

Moody's explained, "SK Innovation's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is expected to decrease from 5 trillion KRW last year to 4 trillion KRW this year, then increase again to 5.7 trillion KRW next year," adding, "This is mainly due to additional revenue growth in the battery business."

It continued, "Although SK Innovation experienced significant losses in the battery business in the first half of this year, business profitability is expected to improve over the next 12 to 18 months thanks to operational efficiency improvements and large-scale tax credits."

Moody's also reaffirmed the credit rating of SK Geocentric, SK Innovation's chemical business subsidiary, at 'Baa3' and revised its rating outlook from 'negative' to 'stable'.

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