Daehan Electric Wire, Credit Rating Jumps to 'A-' After Joining Hoban Group

A Grade After 14 Years

"High Business Stability and Improved Financial Structure"

[Asia Economy Reporter Moon Chaeseok] Daehan Electric Wire announced on the 23rd that Korea Ratings and Korea Investors Service have evaluated its corporate credit rating (ICR) as 'A-·Stable'.

This marks a four-notch increase in the credit rating since Korea Ratings assigned a 'BB+' rating in August 2016, six years ago. It is the first time in 14 years, since 2008, that Daehan Electric Wire's credit rating has risen to an A grade.

Daehan Electric Wire explained that it conducted this credit rating evaluation to assess the company's business and financial status after being incorporated into the Hoban Group.

Korea Ratings and Korea Investors Service cited excellent business stability, sound profit-generating capability, and improved financial structure as the reasons for the rating assignment. Both agencies stated, "Through a strong market position and a diverse product portfolio, the company has established a stable business foundation and is securing growth engines by pursuing additional product diversification, including expanding high value-added items such as submarine cables and optical cables."

Both agencies analyzed that Daehan Electric Wire would be able to respond to investments such as new production facility expansions, as it improved its financial structure by raising 488.9 billion KRW through a paid-in capital increase in March. On a consolidated basis, net borrowings stood at 27.9 billion KRW at the end of March, down about 93% compared to the end of the previous year, and the debt ratio decreased from 266.4% to 99.6% during the same period.

A Daehan Electric Wire official said, "Through a rigorous management normalization process and incorporation into the Hoban Group, the company's financial soundness and business stability have greatly improved," adding, "We will continuously enhance corporate value and external credibility through strengthening competitiveness in our core business and actively investing to secure future growth engines."

Exterior view of Daehan Electric Wire Dangjin Plant in Chungcheongnam-do. (Photo by Daehan Electric Wire)

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