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[Alpha Biz=(Chicago) Reporter Paul Lee] The Korea Credit Rating lowered the credit rating of unguaranteed bonds from the previous A (negative) to A- (stable) on the 8th, saying Hyosung Chemical's profit-generating power and financial structure have decreased.
The company's corporate credit rating also fell from the previous A2 to A2-.
"Hyosung Chemical's quarterly operating deficit has continued since the fourth quarter of 2021 due to rising raw material costs compared to falling sales prices and delays in stabilizing new facilities in Vietnam," the Korea Investors Service said in a related report.
Hyosung Chemical posted a total of 336.7 billion won in operating losses last year on an annual basis.
It was analyzed that time is also needed to improve the financial structure.
The Korea Investors Service said Hyosung Chemical's sequential deposits on a consolidated basis rose from 903.4 billion won in 2018 to 2.52 trillion won as of the end of March this year, judging that "the financial burden has expanded to a heavy level due to the burden of large-scale facility investment."
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
