S&P upgrades SK Hynix (000660 KS / SKHY) to A- (prev. BBB+), amidst AI driven operating strength; outlook positive

SK Hynix Inc.'s operating performance is likely to continue to surge over the next two years on extremely favorable memory sales and robust profitability and operating cash flow. We expect SK Hynix's strong operating performance to extend well into 2028. Hyperscalers' investments are likely to maintain favorable supply-demand dynamics. We see an increased likelihood that the memory market will become less volatile, with long-term agreements bringing in significant revenue and memory's role expanding within the broader AI industry. We raised to 'A-' from 'BBB+' our long-term issuer credit rating on SK Hynix and issue credit rating on its senior unsecured debt. The positive rating outlook reflects our view of a high likelihood of the memory industry expanding in size and profitability, with potentially reduced volatility.