Leading market position in the oil refining and marketing (R&M) industry in Korea Integrated business portfolio Vulnerable to oil refining and petrochemical business cycles as well as fluctuations in crude oil prices A relatively weak financial risk profile for the ratings that is, however, mainly supported by its nondebt financing plan Much reduced capital expenditures from past levels Positive free operating cash flow over the next 24 months The negative outlook reflects Standard&Poor's Ratings Services' opinion that Korea-based oil R&M company SK Innovation Co. Ltd.'s (SKI's) financial risk profile has only narrow headroom to maintain the current rating over the next 24 months. This takes into account the potential for weaker-than-expected operating performance owing to continuing weak industry
