DaeHan Electric Wire Upgraded to A Rating by Korea Investors Service Amid Growth Momentum

NICE Investors Service and Korea Ratings Followed by Korea Investors Service Assign 'A' Rating
Growth Trajectory Expected to Continue Through Product Diversification

DaeHan Electric Wire has received an A credit rating from all three major domestic credit rating agencies. The company is evaluated as having entered a growth trajectory based on its diversified product portfolio, and is expected to maintain a sound level of financial stability.

On July 23, DaeHan Electric Wire announced that it had been assigned a corporate credit rating (ICR) of 'A' with a 'Stable' outlook by Korea Investors Service (hereinafter KIS). This represents an upgrade of one notch each from the 'A-' rating and 'Positive' outlook it received in 2022.

DaeHan Electric Wire logo. DaeHan Electric Wire

With the rating upgrade from KIS, DaeHan Electric Wire has now been assigned an A rating by all three major domestic credit rating agencies. This officially recognizes the company’s performance growth and financial stability. In June of this year, DaeHan Electric Wire received an A rating from NICE Investors Service, and on July 10, it was also assigned an A rating by Korea Ratings.

KIS cited the following factors as the background for the rating: ▲ expansion of sales and profit scale ▲ maintenance of a stable financial structure ▲ expected improvement in operating performance based on high-quality order intake. In its report released on the same day, KIS stated, "Under a favorable business environment, profitability is expected to improve and operating cash generation is expected to continue, based on a diversified product portfolio and strong order performance," adding, "Although investment spending is expected to increase during business expansion, financial stability is expected to be maintained at a sound level through financial buffers and operating cash generation."

The company's growth potential was also positively assessed. "Order backlogs have improved both quantitatively and qualitatively, as new orders have been secured from customers in various regions around the world, including the United States and Europe, resulting in higher profitability compared to the past," the agency noted. "Based on its track record of cable supply and project execution both domestically and internationally, DaeHan Electric Wire is expected to continue to secure new orders going forward."

A DaeHan Electric Wire representative stated, "Receiving an A rating from all three major domestic credit rating agencies is external recognition of our business growth and financial stability," adding, "We will further strengthen our market competitiveness and continue our growth by expanding our business in the subsea cable and high-voltage direct current (HVDC) cable sectors."

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