The rating on Korea-based SK Energy Co. Ltd. reflects the company's leading position in Korea's refining and marketing industry, integrated business portfolio, and flexible financial policy. The rating is constrained by the cyclicality in the company's main businesses and vulnerability to oil and currency fluctuations. Moreover, the current rating has limited tolerance to the company's overall financial risk profile, including capital structure and cash flow protection measurements. SK Energy is Korea's dominant oil refining and marketing player, with around 40% market share in domestic petroleum market, as well as a major petrochemical producer. The company is also partially integrated to upstream business (E&P, exploration and production) with 40,400 barrel of oil equivalent per day of oil production as of the
