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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 Corporation (KR), and NICE Investors Service — have downgraded Lotte Chemical's credit rating from AA (Negative) to AA- (Stable) due to continued operating losses and delayed recovery in financial stability.
As a result, Lotte Corporation, the holding company of Lotte Group, also saw its unsecured bond rating lowered from AA- (Negative) to A+ (Stable), reflecting a decline in the group’s consolidated credit profile.
Lotte Corporation’s integrated credit rating is derived from a weighted average of the standalone credit ratings of four core subsidiaries: Lotte Shopping (AA-), Lotte Chemical (AA-), Lotte Wellfood (AA), and Lotte Chilsung Beverage (AA). The downgrade in Lotte Chemical’s rating, which carries the second-highest weight in the portfolio, directly impacted the group’s overall credit standing.
KIS noted that Lotte Chemical’s prolonged losses and excessive supply conditions are likely to delay earnings recovery. While the company has initiated restructuring plans to reduce debt, the agency emphasized that a meaningful improvement in financial soundness is unlikely in the short term.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
