SK Innovation Outlook Revised To Stable From Negative On Improving Financials; 'BBB' Ratings Affirmed

We expect the demand-supply dynamics in the regional refining industry to be generally more favorable over the next 12 to 18 months than in the past two years and refining margins to be higher than we had earlier anticipated. An improved margin environment and modest capital spending plan will likely translate into steadier positive free operating cash flows over the next two years. We are revising to stable from negative the outlook on the long-term corporate credit rating on SK Innovation. We are affirming our 'BBB' long-term corporate credit and debt ratings on the company. The stable outlook reflects our expectation that SK Innovation will maintain a debt-to-EBITDA ratio below 2.5x over the next 24 months thanks to modest capital

...+ We expect the demand-supply dynamics in the regional refining industry to be generally more favorable over the next 12 to 18 months than in the past two years and refining margins to be higher than we had earlier anticipated. + An improved margin environment and modest capital spending plan will likely translate into steadier positive free operating cash flows over the next two years. + We are revising to stable from negative the outlook on the long-term corporate credit rating on SK Innovation. We are affirming our '###' long-term corporate credit and debt ratings on the company. + The stable outlook reflects our expectation that SK Innovation will maintain a debt-to-EBITDA ratio below 2.5x over the next 24 months thanks to modest capital expenditures and persisting positive free cash flows. HONG KONG (Standard & Poor's) Dec. 3, 2015--Standard & Poor's Ratings Services said today that it has revised to stable from negative the outlook on its '###' long-term corporate credit rating on...

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