Our 'BB+' rating on SK Hynix Inc. is derived from: A 'bb' anchor for the company that we base on our assessment that the company has a "fair" business risk profile and "significant" financial risk profile. The absence of impact that modifiers had on the stand-alone credit profile (SACP) for Hynix. A one-notch elevation from the 'bb' SACP to 'BB+' as a result of our assessment of Hynix as a "moderately strategic" subsidiary of SK Telecom Co. Ltd. (SKT; A-/Stable/--), under our criteria for group rating methodology. Good position in the global market for dynamic random access memory (DRAM) and NAND flash memory Strong technological capabilities and good operating efficiency Exposure to cyclical and rapidly changing semiconductor industry Positive free
