...- In our view, SK Innovation Co. Ltd.'s (SKI) decision to issue common equity in September 2023 demonstrates a level of commitment to manage its credit metrics. The issuance should help reduce the company's debt burden to some degree. - We see an increased likelihood that SKI's financial metrics will gradually improve over the next 12-18 months. This is given the Korea-based energy and chemical company's efforts to tap non-debt financing sources, and advanced manufacturing production credit (AMPC) benefits in the U.S. - That said, SK Innovation's leverage ratio will likely remain elevated over 2023-2024. Investments and execution risks related to expansion in the electric vehicle (EV) batteries segment will weigh on leverage. - On Sept. 15, 2023, S&P Global Ratings affirmed its '###-' issuer credit rating on SKI and its wholly owned subsidiary SK Geo Centric Co. Ltd. (SKGC). We removed the ratings from CreditWatch, where they were placed with negative implications on March 20, 2023. - The...
