Korea Ratings Upgrades SK Hynix Outlook to 'Positive'

On October 29, Korea Ratings announced that it has upgraded the outlook for SK Hynix's unsecured corporate bonds from 'Stable' to 'Positive.' The credit rating remains at 'AA.'

In its report released on the same day, Korea Ratings cited several reasons for the change in outlook for SK Hynix: enhanced market position and earnings stability based on its leadership in high-bandwidth memory (HBM), strong profitability driven by robust artificial intelligence (AI) demand and competitive AI products, and ongoing alleviation of financial burdens thanks to a virtuous cycle of cash flow.

Korea Ratings assessed that SK Hynix has "maintained superior operating performance compared to competitors since the third quarter of 2024 by securing demand for HBM, which has high price and demand visibility, despite fluctuations in the prices of general-purpose products. Since the first quarter of 2025, the company has also held the top market position in the industry based on DRAM sales."

The agency further predicted, "Although the first-mover advantage may partially weaken as HBM competition intensifies in the future, considering the proven technological reliability and mass production capabilities demonstrated to key customers, SK Hynix is expected to maintain its leading supplier position in the technologically advanced HBM4 (6th generation) market, thereby sustaining its enhanced market status and earnings stability."

Additionally, Korea Ratings noted that SK Hynix "achieved record-high operating profit in 2024 and set a new quarterly record in the third quarter of 2025, driven by an improved product mix, including an increased share of HBM3E 12-layer products." The agency added, "In the mid-term, operating profit is also expected to continue rising due to strong AI product competitiveness and sustained robust AI demand."

Furthermore, Korea Ratings projected, "Despite potential profitability risks such as U.S. tariff policies, SK Hynix is expected to maintain strong profit-generating capability, given its solid bargaining power regarding tariffs based on AI technology and the relatively low proportion of general-purpose memory sales, which are more sensitive to price fluctuations."

Alongside this, Korea Ratings also raised the credit outlook for SK Square, the intermediate holding company of SK Group, from 'Stable' to 'Positive.'

Meanwhile, SK Hynix announced on the same day that its consolidated operating profit for the third quarter was provisionally tallied at 11.3834 trillion won, up 61.9% from the same period last year. As a result, SK Hynix shares closed at 558,000 won, up 7.10% from the previous session, and its market capitalization surpassed 400 trillion won.