Leading position in Korea's petroleum refining and marketing (R&M) industry Limited competitive pressures in the domestic market Good operating efficiency and economies of scale Fundamentally cyclical refining industry Large capital investment plans ahead and weak capital structure Weak sister companies highly related to core business The rating on Korea-based SK Energy reflects the company's leading position in Korea's downstream petroleum market, extensive distribution and marketing network, and limited competition in the domestic market. However, the rating is constrained by fundamental cyclicality in the R&M industry, as well as the exploration and production (E&P) industry. Furthermore, the company's overall financial risk profile, including capital structure and cash flow protection measurements, is not yet commensurate with the current rating. Although this situation
