...January 28, 2022 HONG KONG (S&P Global Ratings) Jan. 28, 2022--SK Innovation Co. Ltd. (SKI) remains close to our downgrade trigger for the rating (###-/Negative/--). An improvement in key credit metrics for 2021 hasn't removed our uncertainty over whether the Korean company can sustain its financial performance, given its aggressive financial policy. We estimate SKI's ratio of debt to EBITDA to be slightly below 4.0x for 2021, compared with negative figures in 2020. According to the company's preliminary disclosure for 2021, its EBITDA was Korean won (KRW) 3.3 trillion for 2021 versus negative KRW1.2 trillion in 2020, due to a recovery in oil prices and refining spreads. SKI's reported net debt slightly declined to KRW8.4 trillion from KRW8.7 trillion a year earlier. Asset sales and a dividend cut helped to minimize the impact from heavy investments. However, the debt-to-EBITDA ratio could weaken again over the next one to two years as refining and petrochemical margins moderate and SKI...
