Moody’s gives SK E&S securities Baa3

Moody's Investors Services said it assigned a provisional Baa3 rating to the perpetual subordinated capital securities to be issued by SK E&S Co., Ltd. (Baa1 negative).

The outlook is negative.

SK E&S plans to use the proceeds for general corporate purposes, including capital expenditure.

"The (P)Baa3 rating is two notches lower than the company's Baa1 issuer rating, mainly reflecting the deeply subordinated nature of the hybrid securities," Moody's vice president and senior analyst Mic Kang said in a news release.

The hybrid securities rank pari passu with preferred shares and are therefore deeply subordinated to SK E&S' senior unsecured debt obligations in terms of the priority of claims.

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