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SK Networks said it won a ‘BB+’ rating in its corporate credit assessment based on its business performance in 2003, which was conducted recently by Korea Investors Service.

SK Networks raised its rating by as many as eight notches from “C” in only one year, setting a record of hiking credit rating by the largest margin in the shortest period of time.” Thus, the company has taken a step closer to an early exit from creditors’ joint supervision of its management.

Korea Investors Service said in its assessment report that “SK Networks is judged to have high stability in operation banking on strong brand recognition and a leading position in the market.”

The hikes in its credit rating are significant in that the company has created a business environment where it could raise funds from outside investors through its own credit, and thus has secured adequate capacity to operate management as a normal concern.”

In addition, the company has improved conditions for business transactions including the expansion of credit-based transactions, in terms of marketing and operation. As a result, the credit rating hikes will likely give a big boost to its overall managerial activities.

An official with the financial sector said “The latest corporate credit assessment of SK Networks was based on its performance in 2003, and chances are high that the company will secure a credit rating higher than “BBB-” in a 2005 assessment, which will be based on its 2004 performance. This is because the company has achieved the best possible results, including the attainment of ‘earning surprises’ in five quarters in a row, delivering more than it promised in its self-reform measures, and sell-off of affiliates.  

SK Networks has been attaining alarming records and achievements, which are unprecedented in the history of creditors’ joint supervision of indebted company management. Such achievements include “equal treatment of domestic and foreign creditor banks,” “payment of collateralized bonds obligation (CBO) without borrowing,” “earning surprises in five consecutive quarters,” and complete execution of self-reform measures in the shortest possible period of time.”

Based on the string of achievements, SK Networks has also effectively enhanced its official external confidence by “hiking its corporate credit rating by eight notches.” As a result, the company is expected to set a model for business normalization of other companies undergoing joint supervision by creditors, and debt reduction programs.

Meanwhile, Moody’s Investors Service, the world renowned credit rating agency, on December 22 raised SK Networks’ credit rating outlook to “Positive,” from “Stable,” citing smooth normalization of its operation,” among other achievements.