The ratings on Korea-based SK Innovation Co. Ltd. reflect the company's leading position in Korea's oil refining and marketing (R&M) industry, integrated business portfolio, reductions to planned capital investment, and recent disposal of some overseas assets. The ratings are constrained by the economic cycles of the company's main businesses and its vulnerability to fluctuations in oil and currency prices. Moreover, the current ratings incorporate our anticipation of improvement in the company's overall financial profile, which is currently weak in terms of capital structure and cash flow protection indicators. SK Innovation is Korea's leading oil R&M company and has about a 40% share of the domestic petroleum market. We expect the company to leverage its strong market position as the outlook
