Hanshin Rating "Favorable Outlook for Shipping, Memory, Steel, and Banking This Year"

[Asia Economy Reporter Kang Nahum] Korea Ratings on the 5th identified shipping, memory semiconductors, steel, and banks as industries with relatively bright prospects this year.

On the same day, at the 2022 Industry Outlook webcast, Korea Ratings classified the outlook for 23 industries as 4 'favorable', 17 'neutral', and 2 'unfavorable'.

In particular, the shipping industry received the highest credit outlook rating of 'positive'. The credit outlooks for memory semiconductors, steel, and banks were rated as 'stable'.

Industries with unfavorable outlooks included credit cards and capital. Choi Hyungwook, Head of the Evaluation Policy Division at Korea Ratings, diagnosed, "Credit cards face an unfavorable business environment due to reductions in merchant fee rates, strengthened household debt regulations, and rising interest rates, while capital companies also face challenges from rising interest rates and earnings volatility caused by an increased proportion of corporate and investment finance."

Choi explained, "Corporate credit ratings were more stable than expected last year," adding, "With a favorable liquidity environment, operating performance improved significantly, centered on large export companies."

He continued, "Overall credit risk is expected to remain low this year," but added, "However, manufacturing exports may slow down and the recovery of domestic services may be delayed, and some service sectors still face credit risks."

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