Moody’s has upgraded SK Hynix’s long-term issuer rating and senior unsecured debt rating by one notch to A3 from Baa1, while keeping the outlook at stable. The move marks the first time the memory chipmaker has received an A-range rating from Moody’s since joining SK Group in 2012. It is also the first A-range rating SK Hynix has received from any of the three major international credit rating agencies. Moody’s said the upgrade reflects stronger competitiveness in the artificial intelligence memory market, along with better profitability and cash generation. The agency added that it expects SK Hynix to maintain high profitability and cash creation over the next 12 to 18 months, which should support further improvement in its financial profile. Moody’s also said the company has built up ample cash reserves, strengthening its ability to withstand downside risks tied to the semiconductor cycle. S&P and Fitch currently rate SK Hynix at BBB+, with S&P assigning a positive outlook and Fitch maintaining a stable outlook.
Moody’s has raised SK Hynix’s credit rating into the A category for the first time, citing stronger competitiveness in the artificial intelligence memory market as well as improved profitability and cash generation.
The agency upgraded the company’s long-term issuer rating and senior unsecured debt rating by one notch to A3 from Baa1 a day earlier. The outlook was kept at stable.
The decision marks the first time SK Hynix has received an A-range rating from Moody’s since it became part of SK Group in 2012. It is also the first A-range rating the company has received from any of the three major international credit rating agencies.
At present, S&P Global Ratings and Fitch Ratings both assign SK Hynix a BBB+ rating. S&P’s outlook is positive, while Fitch’s outlook is stable.
Moody’s said it expects SK Hynix to maintain high profitability and cash generation over the next 12 to 18 months, with its financial condition continuing to improve. The agency also said the company has accumulated sufficient cash reserves, strengthening its ability to absorb downside risks from the semiconductor cycle.
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