...- SK Innovation Co. Ltd.'s (SKI) debt leverage will be elevated for longer than we expected. This is owing to high capital expenditure (capex) and a slowdown in demand for electric vehicle (EV) batteries. - The Korea-based company's adjusted debt-to-EBITDA ratio is unlikely to dip below 4x by the end of 2024. The leverage ratio rose to 5.7x in 2023 from 3.3x a year earlier owing to weaker refining business earnings, slower improvement in EV battery margins, and higher capex spending than anticipated. - On March 19, 2024, we lowered our long-term issuer credit rating on SKI and its wholly owned subsidiary SK Geo Centric Co. Ltd. (SKGC) to '##+' from '###-'. - The stable rating outlook is based on our assumption that SKI's debt leverage peaked in 2023, and will gradually decline over the next 24 months. SKI is exploring ways to lower its leverage faster. However, those are unlikely to materialize very quickly and are subject to market conditions....
