Global credit rating agency S&P has lowered its rating outlook for South Korean chipmaker SK hynix from "stable" to "negative" while maintaining its credit rating of BBB-.

In a report issued Friday, the agency forecast worsened conditions for the chipmaker citing shrinking global chip demand and excess inventory held by clients and suppliers.

It predicted a further slowdown in the global memory chip market this year with a decline in DRAM and NAND chip prices persisting through at least the first half due to dwindling demand.

S&P said the Korean chipmaker's surplus operating cash flow will continue to run a deficit this year despite plans to cut back on facility investments.

Still, the agency added a more positive outlook for SK hynix next year, saying its credit indicators will rebound as demand and supply begin to balance out starting the second half of this year.