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Press Release
SK telecom is the First in Korea, aside from financial institutions, to attain the national credit rating from the three most respected credit rating agencies in the World
The Fitch’s assignment of SK Telecom’s credit rating to ’A’ (stable), the same level of Korea’s national credit rating was the first case among Korean business entities.
The increased sales revenue of wireless Internet business and implementation of new businesses in the asymmetric regulation policy and the fierce competition environments were taken into account for upgrading the company’s credit rating
On June 16th, Fitch, one of the leading global rating agencies along with Moody’s and Standard & Poor’s, has assigned SK Telecom’s credit rating to ’A’ (stable), upgrading the rating to the level of Korea’s credit rating.
SK Telecom is the first in Korea, aside from financial institutions, to attain the national credit rating from the three most respected credit rating agencies in the world (Moody’s: A3, S&P: A-).
In particular, the Fitch’s assignment of SK Telecom’s credit rating to ’A’ (stable), the same level of Korea’s national credit rating was the first case among Korean business entities. In this regard, SK Telecom has acquired credit ratings of A, A3, and A- from Fitch, Moody’s and S&P respectively. Thus the company boasts the best credit rating among Korean enterprises. Fitch has been known as more conservative agency in assigning credit rating to enterprises, compared with other credit rating agencies worldwide.
According to Fitch, SK Telecom’s rating reflects the company’s stable operating performance, steady profit structure, and strong cash generating ability. The agency also considered the company’s position as Korea’s leading mobile operator with strong brand recognition, consisting 51.2% market share.
Fitch also explained that the asymmetric regulation policy and the fierce competition environment were taken into account as well. Although the domestic competition remains intense, with continued downward pressure on tariffs and voice ARPU, SK Telecom is likely to sustain its pre-eminent market position due to increasing demand for mobile data, launch of various new services, and significant market share of high-end handsets. The agency analyzed that the recent decline in ARPU is the result of the interconnection rate adjustment, number portability implementation, and tariff cuts.
Sung Min Ha, head of SK Telecom’s Management Support Group, commented "SK Telecom’s global image and reputation is expected to improve greatly. It will bring significant cost reduction when issuing foreign bonds going forward."
Established in 1913, Fitch has grown as one of the top three global rating agencies, and is operating about 50 branches worldwide. Currently Fitch starts its business activities in Korea in a full-fledged manner. It first upgraded the Korea’s national credit rating to eligible investment rating during the IMF bailout.
SK Telecom is the first in Korea, aside from financial institutions, to attain the national credit rating from the three most respected credit rating agencies in the world (Moody’s: A3, S&P: A-).
In particular, the Fitch’s assignment of SK Telecom’s credit rating to ’A’ (stable), the same level of Korea’s national credit rating was the first case among Korean business entities. In this regard, SK Telecom has acquired credit ratings of A, A3, and A- from Fitch, Moody’s and S&P respectively. Thus the company boasts the best credit rating among Korean enterprises. Fitch has been known as more conservative agency in assigning credit rating to enterprises, compared with other credit rating agencies worldwide.
According to Fitch, SK Telecom’s rating reflects the company’s stable operating performance, steady profit structure, and strong cash generating ability. The agency also considered the company’s position as Korea’s leading mobile operator with strong brand recognition, consisting 51.2% market share.
Fitch also explained that the asymmetric regulation policy and the fierce competition environment were taken into account as well. Although the domestic competition remains intense, with continued downward pressure on tariffs and voice ARPU, SK Telecom is likely to sustain its pre-eminent market position due to increasing demand for mobile data, launch of various new services, and significant market share of high-end handsets. The agency analyzed that the recent decline in ARPU is the result of the interconnection rate adjustment, number portability implementation, and tariff cuts.
Sung Min Ha, head of SK Telecom’s Management Support Group, commented "SK Telecom’s global image and reputation is expected to improve greatly. It will bring significant cost reduction when issuing foreign bonds going forward."
Established in 1913, Fitch has grown as one of the top three global rating agencies, and is operating about 50 branches worldwide. Currently Fitch starts its business activities in Korea in a full-fledged manner. It first upgraded the Korea’s national credit rating to eligible investment rating during the IMF bailout.