Kakao Upgraded to Credit Rating AA... Positive Evaluation of Subsidiary IPO

[Asia Economy Reporter Kang Nahum] Kakao announced on the 21st that it received a credit rating of AA with a 'stable' outlook from Korea Technology Evaluation and Korea Credit Rating. This is an upgrade after six years since receiving a credit rating of AA- in 2015.

Korea Credit Rating presented the following evaluation points for Kakao: ▲solid online platform competitiveness ▲enhanced business stability through service expansion and diversification of revenue base ▲stable profit generation from existing businesses and monetization of new businesses ▲financial stability and investment capacity secured through domestic and international fundraising and IPOs.

Korea Technology Evaluation stated the evaluation factors as ▲excellent business stability based on a diversified business structure and strong market position ▲superior financial stability due to improved profitability and subsidiary IPOs ▲expectation to maintain high external growth and improved profitability ▲abundant cash liquidity.

In particular, both companies positively evaluated Kakao's subsidiary IPOs. Kakao Games, Kakao Pay, and Kakao Bank successfully completed their IPOs, and subsidiaries such as Kakao Mobility and Kakao Entertainment are preparing for future IPOs. It is expected that most of the funds needed to secure growth engines can be covered by internal operating cash flow and capital raising.

Kakao Senior Vice President Bae Jaehyun said, "Kakao was able to secure competitiveness in a fierce competitive environment through active fundraising for business expansion, including GDR issuance, investment attraction, and IPO promotion after spin-offs," adding, "We plan to continue improving our financial structure to build the strength to compete with global players and to enter the global market more aggressively."

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