Moody's First-time A1 Rating to SK Hynix Driven by AI Storage Boom Boosting Performance

BlockBeats News, August 4th - International credit rating agency Moody's has upgraded SK Hynix's credit rating to the A range for the first time, reflecting the company's increased competitiveness in the artificial intelligence storage market, as well as improvement in profitability and cash generation ability. Moody's had upgraded SK Hynix's long-term issuer rating and senior unsecured bond rating by one notch the day before, from 'Baa1' to 'A3', with a stable outlook.

Since SK Hynix's integration into SK Group in 2012, this is the first time the company has received a Moody's A-level rating, making it the first of the three major international credit rating agencies to assign an A-level rating to SK Hynix. Currently, S&P and Fitch Ratings both rate SK Hynix as 'BBB+'. S&P has a 'positive' outlook on the rating, while Fitch has a 'stable' outlook.

Moody's expects that in the next 12 to 18 months, SK Hynix will maintain high profitability and cash generation ability, and its financial position will further improve. Moody's believes that the company has accumulated sufficient cash reserves, enhancing its ability to withstand the risks of a semiconductor downturn.