Fitch revises SK Telecom, unit views to stable

Fitch Ratings said it revised the outlook on SK Telecom Co., Ltd.’s long-term foreign- and local-currency issuer default ratings to stable from negative and affirmed its IDRs and senior unsecured rating at A-.

The agency also revised the outlook on subsidiary SK Broadband Co., Ltd.’s long-term foreign- and local-currency IDRs to stable from negative. Fitch affirmed its IDRs and senior unsecured rating at A-.

“The outlook revision reflects the agency’s expectation that the company’s financial leverage will improve as a result of better operating cash generation on continuous 5G adoption and well-controlled capex. We believe investment in 5G will decline gradually after peaking in 2019, leading to an increase in SKT’s deleveraging capacity with incremental cash flow,” Fitch said in a press release.

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