Hankyung Rating "Lotte Shopping Credit Rating Downgraded to 'AA-'"

[Asia Economy Reporter Jang Hyowon] Korea Ratings downgraded Lotte Shopping's unsecured bond credit rating from 'AA' to 'AA-' on the 21st.

The rating outlook was changed from 'Negative' to 'Stable.'

Korea Ratings stated, "Operating performance fell short of expectations, recording a large net loss for the current period, and poor performance in discount stores continues," adding, "This reflects the expectation that meaningful performance recovery in the short to medium term will be difficult."

However, it explained, "The downgrade of Lotte Shopping's credit rating alone does not lower the integrated credit rating of the Lotte Group affiliates," noting, "Despite the decline in retail, hotel, and duty-free business performance, Lotte Chemical's strong performance continues."

Lotte Shopping's consolidated operating profit last year was preliminarily estimated at 215.6 billion KRW, a 37.7% decrease compared to the previous year. The net loss for the period widened to 286.8 billion KRW.

Earlier, on the 16th, NICE Credit Rating also lowered Lotte Shopping's long-term credit rating from 'AA' to 'AA-.'

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