Bulletin: SK Hynix Inc. Rating Unaffected By Share Buyback, New Investment Plans

HONG KONG (S&P Global Ratings) July 30, 2018-- S&P Global Ratings said today that its rating on SK Hynix Inc. (Hynix; BBB-/Stable/--) is unaffected by the company's planned share repurchase and investment. The proposed spending would increase Hynix' debt-to-EBITDA ratio by 0.1x but remain below 0.5x, based on our 2018 estimates. However, the company's solid operating cash flows from its robust memory business should temper the impact. As of June 30, 2018, Hynix generated around Korean won (KRW) 8.2 trillion in operating cash flows and held around KRW4.4 trillion in cash on its balance sheet. Meanwhile, we believe Hynix' financial policies have become somewhat more aggressive, which could constrain the company's creditworthiness. On July 27, 2018, SK Hynix announced plans

...HONG KONG (S&P Global Ratings) July 30, 2018-- S&P Global Ratings said today that its rating on SK Hynix Inc. (Hynix; ###-/Stable/--) is unaffected by the company's planned share repurchase and investment. The proposed spending would increase Hynix' debt-to-EBITDA ratio by 0.1x but remain below 0.5x, based on our 2018 estimates. However, the company's solid operating cash flows from its robust memory business should temper the impact. As of June 30, 2018, Hynix generated around Korean won (KRW) 8.2 trillion in operating cash flows and held around KRW4.4 trillion in cash on its balance sheet. Meanwhile, we believe Hynix' financial policies have become somewhat more aggressive, which could constrain the company's creditworthiness. On July 27, 2018, SK Hynix announced plans to buy back KRW1.8 trillion worth of shares and invest KRW3.5 trillion to build a new semiconductor plant in Icheon, South Korea by 2020. This report does not constitute a rating action....

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