S&P and Fitch Upgrade SK Hynix Credit Outlook to 'Positive'

Outlook Upgraded to "Positive" by S&P Global and Fitch
Strong HBM Market Position and AI Demand Drive Optimism
Credit Rating Remains at BBB Amid Competitive Risks

International credit rating agencies S&P Global and Fitch have revised their outlook for SK Hynix's credit rating from "stable" to "positive." However, the credit rating itself remains at BBB.

Yonhap News

On August 25, S&P explained the rationale for the upgraded outlook, stating, "We expect SK Hynix's financial structure to improve over the next one to two years, based on its solid market position in the high-bandwidth memory (HBM) sector." The increase in HBM demand driven by expanded AI investments was cited as a positive factor.

S&P projected that SK Hynix's annual revenue growth rate will reach about 24% this year, then slow to around 6% next year. The EBITDA margin is expected to peak at 59% this year and remain at about 56% next year.

However, intensifying competition was identified as a risk factor. S&P stated, "Although the HBM market will continue to grow through 2027, if Samsung Electronics and Micron narrow the technology gap, it could impact SK Hynix's growth outlook."

On the same day, Fitch also raised its outlook to "positive," evaluating that "HBM competitiveness is the key driver of performance improvement." Fitch estimated that HBM accounted for 30-40% of SK Hynix's DRAM sales last year, and projected that this share will increase further this year, contributing to stable revenue generation and reduced cash flow volatility.

However, Fitch added that global demand forecasts, U.S. tariff policies, and the competitive landscape with Samsung Electronics remain sources of uncertainty.