SK Shipping's credit rating at 'Stable' level

The Korea Investors Service (KIS Ratings), a Korean credit ratings provider, announced on November 22 that the KIS evaluated SK Shipping's credit ratings as A 'stable'.

SK Shipping received the credit rating from KIS by virtue of their solid business stability owing to long-term transportation contracts and a diversified enterprise portfolio despite the prolonged global economic depression.

KIS also highly appreciated the Korean carrier as it took 4th place as the largest carrier in South Korea for scale in revenue and owned fleets. SK Shipping is in charge of transportation of oil and gas for SK Energy and SK Gas.

However, the shipping company has suffered deficits since 2008 due to poor financial results at foreign branches and losses in derivatives.

Also, SK Shipping's burden of borrowing has grown more and more due to by investments into vessels and additional funds into their subsidiary companies.

The burden of borrowing will grow more because the carrier ordered new fleets on a large scale.

Meanwhile, the company has been relieving its burden through increasing capital by issuing new stocks worth USD 300 million in December 2010.

In addition SK Shipping has been working towards stability through adjusting its derivatives, business reductions at foreign branches and in other ways. < 김보람 기자 brkim@ksg.co.kr >