SK Magic, Credit Rating Upgraded to 'A+' by Korea's Top 3 Credit Rating Agencies

Hanshin Rating followed by Hankyung Rating and NICE Credit Rating also raised outlooks
Evaluations reflect earnings growth amid intensified competition in the rental market

SK Magic's credit rating has been consecutively upgraded due to its rapid growth. Photo by SK Magic

[Asia Economy Reporter Kim Heeyoon] SK Magic's credit rating has been consecutively upgraded due to its rapid growth.

On the 21st, SK Magic announced that its unsecured bond credit rating was upgraded from the previous 'A0' (positive) to 'A+' (stable) by Korea Ratings and NICE Credit Rating, and its commercial paper credit rating was raised from 'A2' to 'A2+'.

As a result, SK Magic has obtained an 'A+' rating from all three major domestic credit rating agencies: Korea Ratings, Korea Investors Service, and NICE Credit Rating.

On the 16th, Korea Ratings upgraded SK Magic's credit rating by one notch. The reasons for the upgrade included △ enhanced business stability due to rapid growth in rental accounts △ expected maintenance of solid profit-generating capability △ excellent liquidity management ability △ elevated status within the SK group.

Two days later, on the 18th, NICE Credit Rating also upgraded the credit rating by one notch. NICE cited △ business stability based on manufacturing, sales, and rental operations △ stable operating profit generation through sales growth △ superior profit-generating ability relative to debt burden as reasons for the upgrade.

Since being incorporated as an SK affiliate in 2016, SK Magic has recorded its highest-ever performance every year. Photo by SK Magic

Since becoming part of the SK group in 2016, SK Magic has recorded record-high performance every year. Amid accelerating competition in the rental market, last year it surpassed 2 million cumulative rental accounts and achieved its highest-ever results with consolidated sales of 1.0246 trillion KRW and operating profit of 81.8 billion KRW.

An SK Magic official stated, “This credit rating upgrade reflects external recognition of our growth and profitability as well as investors' trust and expectations. We will continue to meet expectations through close communication with investors.”