Good position in the global market for dynamic random access memory (DRAM) and NAND flash memory Satisfactory technological capabilities and good operating efficiency Exposure to cyclical and rapidly changing semiconductor industry Low use of debt with strong free cash flow Potential volatility in cash flow and financial indicators Significant capital expenditure needs to maintain technological competitiveness The positive rating outlook on SK Hynix Inc. (Hynix) reflects Standard&Poor's Ratings Services' view that, over the next one to two years, an upgrade has a likelihood of more than one-third if the company continues to generate strong free cash flow and maintains its low use of debt to cushion its exposure to industry volatility. We may raise the rating on Hynix
