[Alpha Biz=(Chicago) Reporter Paul Lee] NICE Credit Rating (NICE Credit Rating) maintained Dongwha Enterpris's long-term credit rating at A- and changed its rating outlook from Stable to Negative.

NICE Ratings cited operating losses stemming from a drop in sales as the reason for adjusting Dongwha Enterpris's credit rating outlook. In fact, Dongwha Enterpris posted an operating loss of 17.7 billion won in the third quarter on a consolidated basis in the wake of a slump in the construction industry and rising raw material prices.

On top of that, Dongwha Enterpris's continued large-scale investment exceeding its operating cash flow also had a negative impact on its credit rating outlook. As of the end of September this year, Dongwha Enterpris had a debt ratio of 181.2% and a sequential deposit dependence of 31.3%.

 

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