Summary: SK Telecom Co. Ltd. Nov 11
- ID: 2027268
- November 2011
- Standard & Poors
The ratings on SK Telecom Co. Ltd. (SK Telecom; A/Watch Neg/--) reflect the company's leading position in Korea's wireless telecommunications market, solid and stable operating cash flow, and modest financial risk profile. The ratings are constrained by the mature Korean domestic market and regulatory uncertainties. Furthermore, if it acquires a major stake in Hynix Semiconductor Inc. (Hynix; B+/Watch Pos/--), as it plans to do, then we may lower the ratings on SK telecom. On Nov. 14, 2011, SK Telecom signed a deal to acquire a 20% stake in Hynix at about Korean won (KRW) 3.4 trillion. In our view, this deal contains a number of negative factors for SK Telecom's credit quality, including the following: The highly cyclical characteristics of...
Companies mentioned in this report are: SK Telecom Co. Ltd.
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