Hankyung Rating, SKC Credit Rating Outlook Downgraded to 'Negative'

Korea Ratings downgraded SKC's unsecured bond credit rating outlook from 'Stable' to 'Negative' on the 7th.

Korea Ratings stated, "The scale has shrunk due to the sale of some business units of SK PU Core and SK Enpulse, and a prolonged supply-demand imbalance of major chemical products has led to continuous operating losses since the fourth quarter of 2022," adding, "The secondary battery materials division (SK Nexilis) also experienced a decline in sales due to a slowdown in the electric vehicle market."

Korea Ratings assessed, "Cash outflows increased as the business structure was reorganized, increasing borrowing burdens," and "Due to expansion investments in SK Nexilis, net borrowings at the end of last year rose to 2.9 trillion KRW, an increase of 1 trillion KRW compared to the previous year."