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Photo = Lotte Chemical |
[Alpha Biz= Kim Jisun] Seoul, June 30, 2025 — South Korea’s three major credit rating agencies—Korea Investors Service (KIS), Korea Ratings (KR), and NICE Investors Service (NICE)—have downgraded the credit ratings of Lotte Chemical and its parent company Lotte Corporation, citing prolonged operating losses and a slow recovery in the petrochemical sector.
Lotte Chemical's long-term credit rating has been lowered from AA to AA-, with the outlook revised to Stable. The agencies pointed to persistent losses driven by oversupply in the olefins market, weak global demand, and operational disruptions such as the recent plant outage in Daesan.
As a result, Lotte Corp—which holds a significant stake in Lotte Chemical—also saw its credit rating downgraded from AA- to A+, and its short-term rating adjusted from A1 to A2+. Related subsidiaries including Lotte Capital, Lotte Property & Development, and Lotte Rental were similarly affected.
Despite ongoing restructuring efforts, including asset sales and reduced capital expenditure, rating agencies noted that a meaningful recovery in financial stability will take time due to limited cash flow generation and ongoing macroeconomic uncertainties.
All revised ratings were assigned a Stable outlook, reflecting the agencies’ view that while further deterioration is not immediately expected, recovery will likely remain gradual.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
