Research Update: SK hynix Upgraded To 'BBB' From 'BBB-' On Strong Rebound In High-Bandwidth Memory Sales, Lower Leverage; Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: SK hynix Upgraded To 'BBB' From 'BBB-' On Strong Rebound In High-Bandwidth Memory Sales, Lower Leverage; Outlook Stable

Research Update: SK hynix Upgraded To 'BBB' From 'BBB-' On Strong Rebound In High-Bandwidth Memory Sales, Lower Leverage; Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: SK hynix Upgraded To 'BBB' From 'BBB-' On Strong Rebound In High-Bandwidth Memory Sales, Lower Leverage; Outlook Stable
Published Aug 07, 2024
6 pages (2504 words) — Published Aug 07, 2024
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

The operating performance of SK hynix Inc. is likely be very strong in 2024 and 2025. The Korea-based company's dominant position in the high-bandwidth memory (HBM) segment and a recovering memory market will propel growth. Additionally, the company's overall competitiveness has increased. We believe SK hynix will be disciplined in its financial policy. That, as well as likely strong cash flows should lower the ratio of debt to EBITDA to 0.5x by the end of 2024, and still lower beyond that. As such, we raised our long-term issuer credit and issue rating on SK hynix and its senior unsecured debt to 'BBB' from 'BBB-'. The stable outlook reflects our expectation of substantial revenue and EBITDA growth for SK hynix over

  
Brief Excerpt:

...- The operating performance of SK hynix Inc. is likely be very strong in 2024 and 2025. The Korea-based company's dominant position in the high-bandwidth memory (HBM) segment and a recovering memory market will propel growth. Additionally, the company's overall competitiveness has increased. - We believe SK hynix will be disciplined in its financial policy. That, as well as likely strong cash flows should lower the ratio of debt to EBITDA to 0.5x by the end of 2024, and still lower beyond that. - As such, we raised our long-term issuer credit and issue rating on SK hynix and its senior unsecured debt to '###' from '###-'. - The stable outlook reflects our expectation of substantial revenue and EBITDA growth for SK hynix over the next two years, enabling the company to reduce debt and keep the debt-to-EBITDA ratio at less than 0.5x....

  
Report Type:

Research Update

Ticker
0066@KS
Issuer
SK hynix Inc.
GICS
Semiconductors (45301020)
Sector
Global Issuers
Country
Korea
Region
Emerging Markets
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: SK hynix Upgraded To 'BBB' From 'BBB-' On Strong Rebound In High-Bandwidth Memory Sales, Lower Leverage; Outlook Stable" Aug 07, 2024. Alacra Store. May 01, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-SK-hynix-Upgraded-To-BBB-From-BBB-On-Strong-Rebound-In-High-Bandwidth-Memory-Sales-Lower-Leverage-Outlook-Stable-3225940>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: SK hynix Upgraded To 'BBB' From 'BBB-' On Strong Rebound In High-Bandwidth Memory Sales, Lower Leverage; Outlook Stable Aug 07, 2024. New York, NY: Alacra Store. Retrieved May 01, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-SK-hynix-Upgraded-To-BBB-From-BBB-On-Strong-Rebound-In-High-Bandwidth-Memory-Sales-Lower-Leverage-Outlook-Stable-3225940>
  
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