Korea Ratings: Five Credit Rating Changes in Q1... One Upgrade, Two Downgrades, Two Defaults

Korea Ratings announced on May 28 that, after analyzing 416 companies holding its credit ratings (senior unsecured bonds) in the first quarter, it found that the credit ratings of two companies had been downgraded.

Among the companies whose credit ratings changed, there were five companies (1.2%): one company (0.2%) saw its rating upgraded, two companies (0.5%) were downgraded, and two companies (0.5%) defaulted. The number of companies whose ratings remained unchanged was 403 (96.9%), and eight companies (1.9%) had their ratings withdrawn. Korea Ratings analyzed, "In the first quarter, the number of credit rating changes decreased compared to the same period last year, but the trend remained skewed toward downgrades and defaults."

As of the end of March, among the 412 companies holding Korea Ratings' credit ratings (excluding D ratings), the proportion of investment-grade companies was 89.3%, while speculative-grade companies accounted for 10.7%. Companies rated A or higher made up 79.9%, with AA-rated companies representing the largest share at 35.7%. Companies rated BBB or below accounted for 20.1%.

Also as of the end of March, 359 companies had a "stable" outlook, 19 companies had a "positive" outlook, and 29 companies had a "negative" outlook.

Korea Ratings stated, "This year, the impact of environmental variables is expected to differ by industry, and some sectors are anticipated to see improvements in business conditions and performance." However, it also predicted, "Given the delayed recovery of domestic demand, deterioration of the global trade environment, increased volatility in financial markets, and potential risks related to real estate project financing (PF), the overall direction for credit ratings is still expected to be 'negative.'"

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