SK Telecom affirmed at 'A' with stable outlook - Fitch |
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Mon, 09 Jul 2007 07:03
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MUMBAI (Thomson Financial) - Fitch Ratings has affirmed the long-term foreign currency issuer default rating of Korea-based SK Telecom Co Ltd at 'A' with a stable outlook. At the same time, the agency has assigned an expected rating of 'A' to the proposed US dollar senior unsecured notes to be issued by the company.Fitch said the group's rating reflects its position as Korea's leading mobile telecommunications operator. Despite intense competition, it has maintained its domestic market share at more than 50 pct, Fitch said. The rating also considers the company's robust financial profile.The stable outlook reflects Fitch's expectation that the group will sustain its strong business and financial profile over the medium term, Fitch added. It also said that it will monitor the potential impact of the new Ministry of Information and Communication policy on the company.However, Fitch said the rating would face downward pressure if industry competition increases substantially, the new MIC policy turns out to be more unfavourable than expected, or the company makes a major debt-funded acquisition or investment.Meanwhile, in a separate release, Moody's Investors Service said it assigned an 'A2' rating to SK Telecom's proposed US dollar senior unsecured notes and affirmed the company's 'A2' issuer rating, with a stable outlook reflecting the group's extremely strong credit profile.'The A2 rating continues to reflect SKT's leading position in cellular services in South Korea, including a strong performance track record and an excellent financial profile,' Laura Acres, a Moody's vice-president stated.TFN.newsdesk@thomson.comnpr/jroCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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