The ratings on Korea-based SK Innovation Co. Ltd. (BBB/Stable/--) reflect the company's leading market position, integrated business portfolio, and plans to reduce capital investment. Factors that constrain the ratings are the economic cycles of the company's main businesses, its vulnerability to fluctuations in oil and currency prices, and rising uncertainty about regulatory pressure in the domestic petroleum market. Moreover, the current ratings incorporate our anticipation of improvement in the company's overall financial risk profile, which is currently weak in capital structure and measures of cash flow protection. SK Innovation is Korea's leading oil refining and marketing (R&M) company, with about 40% of the domestic petroleum market. Given this strong position, we expect it to maintain stable profitability in the domestic
