South Korea's Hanwha Hotels & Resorts announced on March 21 that Korea Ratings and Korea Investors Service elevated the company's corporate bond credit rating as A- (stable.)
It's the highest credit rating grade since its establishment in 1979.
This upgrade reflects the company's robust financial restructuring efforts, including two consecutive years of operating profit and debt reduction through asset sales, leading to an improved debt ratio.
Korea Ratings raised its assessment from BBB+ (positive) to A-, while Korea Investors Service, conducting its first analysis of the company this year, also assigned an A-.
In the previous fiscal year, Hanwha Hotels & Resorts reported a substantial rise in consolidated sales to 732.3 billion won ($552 million), up by 11.6% year-over-year.
Operating profits soared 744.6% by 23.8 billion won.
Following this credit rating enhancement, Hanwha Hotels & Resorts is set to recommence its public bond issuance on April 4, the first since February 2020.
The company aims to secure 50 billion won by the sale of 1.5-year bonds worth 20 billion won and 2-year bonds amounting to 30 billion won, earmarked for future investments.
Write to Sun A Lee at
suna@hankyung.com
