Moody’s: SK Innovation, SK Global to negative

Moody's Investors Service said it revised the outlook on the Baa2 issuer and senior unsecured ratings of SK Innovation Co. Ltd. (SKI), Baa2 issuer rating of SK Global Chemical Co., Ltd. (SKGC) and Baa2 senior unsecured rating of SK Global Chemical Investment Hong Kong Ltd. to negative from stable.

At the same time, the agency affirmed the Baa2 on the issuer and senior unsecured bond ratings.

The action is in response to SKI's announcement of its weak earnings for the second quarter of 2014 on July 25.

"The outlook revision reflects SKI's weak operating results in 1H 2014 and the high likelihood that SKI's profit margins and debt metrics will not recover materially during the next 12-18 months, despite additional operating cash flow from the commercial operations of new petrochemical facilities in 2014-15," Moody's vice president and senior analyst Mic Kang said in a news release.

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