Korea Ratings Places SK Siltron on Watchlist for Possible Downgrade

SK Inc. Selects Doosan Corporation as Preferred Bidder for SK Siltron Acquisition

Korea Ratings announced on December 18 that it has placed SK Siltron's unsecured bonds and commercial paper credit ratings on a watchlist for possible downgrade, following the selection of a preferred bidder for the acquisition of SK Siltron.

Previously, SK Inc. disclosed the previous day that it had selected Doosan Corporation as the preferred bidder for the acquisition of SK Siltron.

However, it is reported that specific details such as the stake to be sold, the transaction amount, and the schedule have not yet been finalized.

Regarding this, Korea Ratings explained, "SK Siltron's unsecured bonds and commercial paper credit ratings currently include a one-notch uplift reflecting the potential support from the SK Group in case of need. Given that Doosan Corporation will become the largest shareholder upon completion of the acquisition, and considering Doosan's creditworthiness, it is unlikely that a group support-based rating uplift will be maintained."

Korea Ratings further stated, "We will comprehensively review the progress of the sale, the impact of potential changes in the business relationship with SK hynix due to the change in the largest shareholder, the implications for business stability, the response plan for the repayment burden of borrowings with change-of-control restrictions, and the structure of the largest shareholder's acquisition funding and its impact on the company's financial stability. The final impact on the company's credit rating will be reflected at the time the transaction is concluded."