DL E&C's First Credit Rating After Split AA- "Top Tier in Construction Industry"

[Asia Economy Reporter Onyu Lim] DL E&C (formerly Daelim Industrial) has received a top-tier credit rating in the construction industry for the first time since its spin-off, earning high marks for financial stability and growth potential. On the 9th, DL E&C announced that it received an AA- credit rating with a 'stable' outlook from two of the three major domestic credit rating agencies, Korea Ratings Corporation and Korea Credit Rating.

Korea Ratings Corporation and Korea Credit Rating evaluated DL E&C as having excellent business stability based on its top-tier market position in the industry and abundant order backlog. They also noted that the company has secured a strong financial structure and is expected to maintain its current level of financial stability, granting the new entity the same credit rating as Daelim Industrial before the spin-off.

DL, which launched as a holding company system in January this year, plans to focus the group's capabilities in construction, petrochemicals, and energy to develop growth strategies for each sector and foster new growth engines. In particular, DL E&C aims to innovate productivity by integrating digital innovation technologies into the construction industry and grow as a total solution business centered on developers. A DL E&C official stated, "With premium brand power and the industry's highest credit rating, we have established a solid foundation to pursue various developer projects with optimized financing costs."

Based on pre-spin-off figures, DL E&C achieved KRW 10.265 trillion in sales and KRW 1.1781 trillion in operating profit last year. Despite the challenging business environment due to COVID-19, the construction business played a key role in achieving record-high operating profits by recording KRW 741.3 billion in separate operating profit. In particular, the housing business showed the industry's highest profit margin, becoming a source of profitability. DL E&C has set management goals for this year of KRW 7.8 trillion in sales, KRW 830 billion in operating profit, and KRW 11.5 trillion in new orders.

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