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Press Release
Upgrades SK Telecom’s credit rating from the existing Baa1 (Stable), to Baa1 (Review for Possible upgrade)
Results from an affirmative evaluation of SK Telecom’s efforts toward continued improvement of its corporate governance structure
On March 8, Moody’s, a worldwide credit rating institution, announced the upgrade of SK Telecom’s credit rating from existing Baa1 (Stable) to Baa1 (Review for Possible upgrade). The ’Baa1’ rating is a preliminary stage before upgrading to A3 which is the national credit rating of Korea.
A Moody’s official revealed that this upgrade is attributed to the affirmative evaluation of SK Telecom’s efforts toward continued improvement of it’s corporate governance structure. This includes SK Group officials, and its owner members, stepping out of memberships on SK Telecom’s board of directors.
In addition, SK Telecom’s EBITDA Margin for 2003 improved to 49%. Its business performance is also expected to be favorable in the fiscal year 2004 and beyond, due to the constant increase in the number of wireless Internet users. These were some of the important factors that explain the potential for an upgrade of SK Telecom’s credit rating to A3.
As a result, SK Telecom’s credit rating would become higher than that of KT, whose credit rating is Baa1 (Positive). Furthermore, this measurement is an advance notice to a possible upgrade to the rating A3, which is the national credit rating of Korea. This would greatly contribute to the enhancement of foreign confidence in Korea.
An SK Telecom official commented, "Moody’s evaluated the recent announcement of three SK Telecom directors’ resignation, as SK Group’s strong will to improve SK Telecom’s corporate governance structure. At the same time, the institution indicated it had great confidence in the new board members who will be appointed this month.
Moody’s announcement regarding the upgrade of SK Telecom’s credit rating resulted from its affirmative evaluation of the initiatives executed by SK Corporation and SK Telecom that are designed to improve their corporate governance structure. This will have a favorable effect upon other credit rating institutions worldwide, as well as at SK Telecom’s annual shareholders’ meeting where there is an expectation of a voting confrontation with Sovereign.
A Moody’s official revealed that this upgrade is attributed to the affirmative evaluation of SK Telecom’s efforts toward continued improvement of it’s corporate governance structure. This includes SK Group officials, and its owner members, stepping out of memberships on SK Telecom’s board of directors.
In addition, SK Telecom’s EBITDA Margin for 2003 improved to 49%. Its business performance is also expected to be favorable in the fiscal year 2004 and beyond, due to the constant increase in the number of wireless Internet users. These were some of the important factors that explain the potential for an upgrade of SK Telecom’s credit rating to A3.
As a result, SK Telecom’s credit rating would become higher than that of KT, whose credit rating is Baa1 (Positive). Furthermore, this measurement is an advance notice to a possible upgrade to the rating A3, which is the national credit rating of Korea. This would greatly contribute to the enhancement of foreign confidence in Korea.
An SK Telecom official commented, "Moody’s evaluated the recent announcement of three SK Telecom directors’ resignation, as SK Group’s strong will to improve SK Telecom’s corporate governance structure. At the same time, the institution indicated it had great confidence in the new board members who will be appointed this month.
Moody’s announcement regarding the upgrade of SK Telecom’s credit rating resulted from its affirmative evaluation of the initiatives executed by SK Corporation and SK Telecom that are designed to improve their corporate governance structure. This will have a favorable effect upon other credit rating institutions worldwide, as well as at SK Telecom’s annual shareholders’ meeting where there is an expectation of a voting confrontation with Sovereign.