Moody's ups SK Telecom ratings

Moody's Investors Service said it upgraded SK Telecom Co. Ltd.'s debt and issuer rating to A3 from Baa1.

Moody's said the rating change is based on the recent resolution of the issue of the SKT board's composition and the appointment of a new chairman - events which support improved corporate governance - as well as the strength of the company's fundamentals.

The negative outlook for SK Telecom reflects the negative outlook for Korea's foreign currency ceiling.

Moody's noted that SK Telecom continues to demonstrate a very strong operating and financial profile for its rating level. For 2003, EBITDA margins reached 49%, EBITDA/interest was 12.5x and debt/EBITDA 0.9x. Its operating profile is likely to remain strong, given that the growth in wireless internet usage is offsetting the impact of falls in sign-up fees and call charges.

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