International credit rating agencies Standard & Poor's (hereafter S&P) and Fitch upgraded SK hynix's credit outlook from 'stable' to 'positive' on the 25th. The credit rating remained at BBB. Following Moody's last month, all three major international credit rating agencies, including S&P and Fitch, evaluated that SK hynix's credit capacity has strengthened.
S&P explained the background for the credit outlook upgrade, stating that "SK hynix will continuously improve its financial statements based on a solid market position in the high-bandwidth memory (HBM) sector with strong profitability over the next 1 to 2 years," and noted that "as investments related to artificial intelligence (AI) expand, HBM demand is expected to increase, and leading company SK hynix is well-positioned to take advantage of this HBM boom."
S&P projected that SK hynix's annual sales growth rate would reach about 24% this year, dropping to around 6% next year. The EBITDA margin is forecasted to be 59% this year and 56% next year. However, it evaluated that the increased competition in the HBM market is a major risk factor.
S&P stated that "if Samsung Electronics or Micron narrow the technological gap and achieve faster-than-expected HBM growth, it could impact SK hynix's growth outlook," adding that "while competitors' market shares may rise, SK hynix's leading market position is unlikely to weaken significantly over the next two years."
Fitch also mentioned the reason for the credit outlook upgrade that day, noting that "the competitiveness in the HBM sector is a key driver of SK hynix's improved performance," and projected that "the share of HBM in SK hynix's DRAM sales, estimated to be around 30-40% last year, would rise further this year, helping with stable revenue generation and reducing cash flow volatility." However, it acknowledged uncertainties related to demand, U.S. tariff policy, and competitiveness against Samsung Electronics.