According to industry sources on the 24th, global credit rating agency Standard & Poor’s (S&P) changed SK Innovation’s credit rating and outlook from ‘BB+ Stable’ to ‘BB+ Credit Watch Positive’. The Credit Watch indicates that S&P will reevaluate the credit rating within 90 days, and Credit Watch Positive implies a possibility of an upward revision in SK Innovation’s credit rating.
S&P stated that they will reevaluate the credit rating focusing on the financial outlook of the merged entity and improvements in the electric vehicle battery business. They explained that if they assess that the support potential from the parent company SK Corporation has increased due to this merger, they may adjust SK Innovation’s rating upwards.
Global credit rating agency Moody’s also evaluated the merger decision of SK Innovation and SK E&S as “positive” in terms of SK Innovation’s creditworthiness. However, Moody’s predicted that there would not be an immediate impact on the ratings and outlook. Moody’s currently rates SK Innovation’s credit rating and outlook as ‘Baa3, Negative’.
An SK Innovation official commented, “Through this merger, we have become the largest private energy company in the Asia-Pacific region in terms of asset size,” and said, “Based on expanded scale and competitiveness, we will grow into a world-class energy company in the global market.”