BlockBeats news, on August 4, international credit rating agency Moody’s upgraded SK Hynix’s credit rating to the A range for the first time, reflecting the company’s enhanced competitiveness in the AI storage market, as well as improved profitability and cash generation capacity. The day before, Moody’s raised SK Hynix’s long-term issuer rating and senior unsecured bond rating by one notch, from “Baa1” to “A3,” with a stable outlook.
Since SK Hynix joined the SK Group in 2012, this is the company’s first A rating from Moody’s and the first A rating awarded to SK Hynix by any of the three major international credit rating agencies. Currently, S&P and Fitch both rate SK Hynix at “BBB+,” with S&P assigning a “Positive” outlook and Fitch assigning a “Stable” outlook.
Moody’s expects SK Hynix to maintain strong profitability and cash generation over the next 12 to 18 months, with its financial position further improving. Moody’s believes the company has accumulated sufficient cash reserves, enhancing its ability to withstand downturns in the semiconductor cycle.