SK Hynix Inc.

Good position in the global market for DRAM and NAND flash memory. Satisfactory technological capabilities and good operating efficiency. Exposure to cyclical and rapidly changing memory semiconductor industry. Low debt with strong operating cash flows. Potential volatility in cash flow and leverage. Significant capital expenditure needs to maintain technological competitiveness. The stable outlook reflects our expectation that SK Hynix Inc. will maintain stable financial metrics over the next one to two years mainly due to its good position in the global dynamic random access memory (DRAM) market. This is even though we expect industry conditions to remain tough. We could lower our rating if an unexpectedly severe downturn in the global semiconductor industry or a deteriorating competitive position significantly weakens

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