Halla Upgraded to BBB+ Credit Rating

[Asia Economy Reporter Kim Hyemin] The credit rating of Halla Co., Ltd. has been upgraded by one notch to 'BBB+', which is a stable level.

According to Halla on the 3rd, Korea Ratings raised Halla's 121st unsecured bond credit rating from BBB0 (positive) to BBB+ on the 29th of last month. The ratings for commercial paper and electronic short-term bonds were also upgraded from 'A3' to 'A3+'.

Korea Ratings cited stable operating performance and expanded cash flow through high-quality order backlog, as well as financial structure improvement through asset sales as reasons for the rating upgrade.

Kim Hyun, a senior researcher at Korea Ratings, said, "After successfully carrying out the Baegot New Town project, Halla has enhanced its order competitiveness by securing reconstruction and redevelopment orders in the metropolitan area and resuming its own projects. As of the end of last year, the order backlog expanded to 3.8 trillion won, and it is expected to maintain a favorable order flow this year as well."

Securities firms are also raising their target prices for Halla one after another. Heungkuk Securities raised the target price from 5,000 won to 7,000 won in February this year, and recently Shin Young Securities also raised the target price to 7,000 won.

A Halla official said, "We will accelerate growth based on strengthening fundamentals," adding, "We will also put more effort into discovering future growth engines."

This content was produced with the assistance of AI translation services.