[Sad news] Moody’s, relentless mass relegation wwwwwwwwww the trust of South Korean companies

[Sad news] Moody's, relentless mass relegation wwwwwwwwww the trust of South Korean companies Machine translation Moody's warning "A high probability of a South Korean company being demoted a lot of credit" Newspaper A1 page 1 column article entry. 17:41 PM Moody's, a global credit rating company, has warned that South Korean credit ratings are likely to be demoted in large quantities over the next year. Reflecting the concern that the business performance will deteriorate due to the prolonged trade dispute between the US and China as the domestic economy continues to deteriorate. According to Moody ’s report on the 10th, “Korean Company Performance and Credit Deterioration Trend”, 19 out of 27 non-financial Korean companies rated by Moody ’s have negative credit for worsening operating performance in the first half of this year Announced that may be adjusted to. Five companies have positive results, and three are neutral companies. There are 13 Korean private companies where Moody's currently has a “negative” outlook on the rating or is considering a downgrade. No company has a “positive” outlook. Yuan Fim Dee, a senior researcher, said that companies belonging to industries with large economic fluctuations such as semiconductors, essential oils, petrochemicals, and steel are suffering from sluggish demand and sluggish business conditions. High companies will continue to be negatively affected. " He predicted, “This change will be particularly noticeable in the electronics and chemical industries, where China exports more raw materials and components.” Dr. Yu has diagnosed that “Japan's export restrictions are not expected to have a significant impact on the performance of Korean companies, as they are expected to remain to delay administrative procedures.” Moody's “Export Decline, Electronic / Chemical Negative Prospects” The impact of beauty and medium conflict on the downturn in the domestic economy A global credit rating company has further raised the warning sound that the downgrade risk of Korean companies has increased. Even Moody's, who had a relatively optimistic outlook, began to voice that worsening performance would be transferred to credit risk expansion. In spite of sluggish business performance due to the economic downturn, it is evaluated that trade disputes are acting as an additional bad factor for cars that were not heavily burdened with cash outflows due to shareholder returns such as high dividends. Moody's has been reddying the credit ratings of Korean companies in the second half of the year. The company decided to split in July (KCC credit rating Baa3) and adjusted it downward for consideration, and SK Hynix's credit rating (Baa2) was also "negative". Last month, SK Innovation (Baa1) changed its outlook for e-mart's credit rating (Baa3) from “Stable” to “Negative” and its subsidiaries SK Sogo Chemical (Baa1), LG Chemical (A3) The creditworthiness of (A3) has been given a “negative” one after another. Moody's pointed out, as a negative factor, that the worsening operating environment of both companies reduced profitability and increased the debt burden. While trade disputes between the United States and China have been prolonged, Korean companies are highly regarded as entering into a harsh business environment with the addition of trade disputes with Japan. Standard & Poor's (S & P), which had a pessimistic outlook from the beginning of this year, reported that Korean companies faced increased credit risk in early July. “It has entered a downturn.” Immediately after Japan tightened export restrictions on semiconductors and display materials to Korea. S & P expects Korean companies to continue to suffer from credit deterioration over the next year. The number of companies that have made this credit rating company this year's credit rating or changed their valuation outlook worse than before is 9, the highest since 5 years since 2014. Bakujunhong S & P Director said, “Industry with high export dependence such as automobiles and refined chemicals will be in difficult situation for 1 to 2 years, not only for semiconductors and smartphones, but also for expanding conflict over global trade with slowing demand.” Prospected. The view of domestic rating companies has also changed negatively. The largest number of companies in the first half of this year that have been downgraded by credit ratings in the first half of this year, such as the Korean Company Rating, Korea Credit Rating, and Nice Credit Rating, were the highest in 44 places in 2016 (86 places) for the first time in three years. The evaluation Sanghayang ratio (upward / downward) was also 0.68 times, a sharp drop from the first half of last year (1.13 times). It is an evaluation that the decline in corporate creditworthiness, which had stopped for the first time in six years last year, has resumed this year. * Some excerpts from the link below. 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