The rating on Korea-based SK Energy reflects the company's leading position in Korea's oil refining and marketing industry, its integrated and diversified business portfolio, and its flexible financial policy. The rating is constrained by the cyclical nature of the company's main businesses and its vulnerability to oil and currency fluctuations. Moreover, the current rating incorporates limited tolerance of the company's overall financial risk profile, including capital structure and cash flow protection measures. SK Energy is Korea's dominant player in oil refining and marketing, with a roughly 40% share of the domestic petroleum market, as well as being a major petrochemical producer. The company's oil refining and marketing business is partially integrated with upstream exploration and production, with oil production equivalent
