SK Telecom is regarded as the undisputed market leader among Korea's three mobile service providers, as well as one of the country's premier corporations in terms of financial strength and soundness. In recognition of its firm market position, solid revenue structure and ample cash flow, SK Telecom received the maximum AAA credit rating for its corporate bonds from Korea Investors Service, Korea Ratings and National Information & Credit Evaluation (NICE) as of September 2006.
Credit ratings assigned to corporate bonds are classified into 10 levels ranging from AAA, the top rating, to D, the lowest credit quality. Credit ratings from AAA to BBB are "investment grade," as such bonds offer a high capacity for repayment of interest and principal. Ratings from BB to C are "speculative" in that changes in the financial environment of companies issuing such bonds can greatly affect their capacity for repayment.
| AAA | Repayment capacity is highest |
|---|---|
| AA | Repayment capacity is excellent, though somewhat lower than AAA. |
| A | Repayment capacity is excellent, but can more easily be affected by changes in financial environment and economic factors. |
| BBB | Repayment capacity is good, although there is a possibility this capacity may deteriorate as a result of future unfavorable financial conditions and/or economic factors. |
| BB | Repayment capacity at the moment is relatively good, although such bonds are considered speculative and carry no strong guarantee of future redemption. |
| B | Repayment capacity is uncertain and contingent upon sustained, favorable business and economic environment. |
| CCC | Repayment capacity is uncertain. Bonds classified as such are highly speculative due the possibility of repayment default. |
| CC | Redeemability is even less certain than with higher ratings. |
| C | Possibility of imminent default is high, with no capacity for repayment. |
| D | Payment default. |
Plus (+) and minus (-) signs are used with a rating symbol to indicate the relative position of a credit within the rating
category. Plus and minus signs are used in the AA to B categories only.
- Corporate bond ratings also include currently issuable bonds.
- "Company Name (S)" indicates subordinated corporate bonds.
- A corporate bond rating in parentheses ( ) indicates the credit rating for an individual company in the absence
of support from its Group.