The agency cited significant improvements in the Korean chipmaker's earnings and cash flow, driven by rising memory prices and the company's competitive edge in AI chip technologies. Moody's expects the positive trend to continue over the next 12-18 months.
Despite increased capital expenditure for expanding AI memory production capacity, SK hynix is projected to reduce its debt. This is evidenced by the company's recent 4.2 trillion won debt reduction in the second quarter of 2024.
Moody's forecasts SK hynix's EBITDA to reach 39 trillion won by 2025, attributing this growth to the company's technological prowess in DRAM (including HBM and DDR5 for servers) and competitiveness in NAND business with products like eSSD.
Previously, on Aug. 7, S&P Global Ratings also upgraded SK hynix's credit rating from 'BBB-' to 'BBB', its highest ever, noting the company's performance growth and stable cash flow.
