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[Apha Biz=(Chicago) Reporter Paul Lee] Global credit rating agency Moody's said on the 16th that it has adjusted its outlook for SK Innovation from "negative" to "stable."
The view reflects improved profitability in the battery business, diversified portfolios, and a leading position in the oil refining industry.
Also, SK Innovation's corporate credit rating was confirmed as 'Baa3'.
"The change in SK Innovation's outlook from negative to stable reflects expectations that the company's financial leverage will gradually improve over the next 12 to 18 months, more than offsetting net debt growth," Moody's said.
"We expect SK Innovation's operating profit before adjusted amortization (EBITDA) to fall from 5 trillion won in 2022 to 4 trillion won in 2023," he said. "This is mainly because inventory-related losses in the first half of this year and weak margins in the oil refining business are likely to offset the recovery of profits from the battery business."
However, he said, "SK Innovation's adjusted EBITDA is expected to increase to about 5.7 trillion won in 2024, mainly thanks to the growth of additional profits in the battery business."
He predicted, "After SK Innovation suffered significant losses in its battery business in the first half of this year, its business profitability will improve over the next 12∼18 months thanks to improved operational efficiency and large-scale tax deductions."
Moody's also adjusted the rating outlook for SK Geocentric, a petrochemical subsidiary of SK Innovation, from 'negative' to 'stable'. The credit rating was also reaffirmed as 'Baa3'.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
