S&P Global Ratings retained SK Innovation's (KRX:096770) BBB- long-term issuer credit rating, according to a recent release.

The company should observe EBITDA gains from strong profits from its refining business in the first half of 2026, driven by solid margins and increasing oil prices, S&P said.

However, material risks abound, specifically given the ongoing Middle East conflict and further slowdown in the electric vehicle (EV) battery and chemical segments.

Korea's oil wholesale price cap should also narrow short-term gains and offer a more complex longer-term outlook, S&P said.

The company could lessen its elevated leverage through further fundraising measures and stronger refining profits, S&P said.

The rating agency estimates adjusted debt-to-EBITDA of 5.3x this year, improving from 9.7x in 2025.

The outlook is negative, stemming from significant volatility due to operational disruptions in the Middle East and EV battery business weakness that offsets debt reduction efforts.

Material developments in the company's adjusted debt-to-EBITDA ratio, the competitiveness of the EV battery business, or the credit profile of parent SK could prompt future rating actions.