Moody's rates SK Telecom notes A3

Moody's Investors Service said it assigned an A3 rating to the proposed senior unsecured dollar-denominated notes to be issued by SK Telecom Co., Ltd.

The outlook is stable.

SK Telecom plans to use the proceeds to repay existing debt and for other general corporate purposes, Moody's said.

The rating is underpinned by SK Telecom's dominant position in Korea's mobile telecommunications market and strengthening market position in the fixed-line business, which will continue to support its credit profile over the next 12 to 18 months, Moody's said.

The agency said it expects SK Telecom's adjusted debt-to-EBITDA over the next 12 to 18 months, excluding the potential additional debt adjustment associated with the 5G spectrum auction in June 2018.

The ratings also consider SK Telecom's moderate profitability amid intense competition and loss-making e-commerce business, as well as elevated regulatory risk as the Korean government continues to attempt to introduce measures to lower mobile tariffs, Moody's said.

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