Moody's maintains negative outlook for E-mart, SK hynix, SK Innovation

Moody's maintains negative outlook for E-mart, SK hynix, SK Innovation

gettyimagesbank

LG Energy Solution’s IPO raises positive outlook for LG Chem

By Park Jae-hyuk

Moody’s Investors Service maintained its negative credit outlook for E-mart, SK hynix and SK Innovation, citing their continued debt growth, stemming from large capital spending or the acquisitions of other companies.

SK geo centric was also facing a negative outlook, due to the chemical company’s credit linkage with its parent, SK Innovation.

“Of the 22 private sector companies we rate, 17 have stable outlooks, four have negative outlooks, and one has a positive outlook,” Moody’s analyst Sean Hwang said Wednesday during an online press conference on the credit rating agency’s outlook for Korean non-financial companies.

LG Chem was the only private sector company with a positive outlook.

Moody’s cited the chemical firm’s strong earnings and potential listing of its battery subsidiary, LG Energy Solution (LGES), which submitted its prospectus Tuesday to the Financial Services Commission to go public on Jan. 27.

“Battery producers’ debt will continue to rise, unless large equity financing is raised,” Hwang said, indicating that the initial public offering of LGES will help its parent company curb its debt growth.

Based on the forecast that Korea’s GDP will grow 3.2 percent next year, after growing 4 percent this year, Moody’s expected most companies here to maintain “largely stable leverage metrics” and enjoy solid earnings.

Supply chain imbalance, however, was viewed as a risk that could cause a divergence of sector conditions, limiting earnings improvements for automotive and technology companies.

“Margins in the technology, steel and chemical sectors will soften moderately from this year’s high levels, as supply-demand dynamics weaken,” Hwang said.

Korea Investors Service (KIS), the domestic subsidiary of Moody’s, expects more local firms to avoid credit rating downgrades or negative outlooks next year, due to the economic recovery from the COVID-19 pandemic.

“The resurgence of the coronavirus will have a limited impact on the economy, although we will continue to monitor each country’s quarantine rules and the economic impact of the pandemic,” said KIS senior analyst Won Jong-hyun, who also participated in Wednesday’s press conference.

The credit rating agency, however, warned of movie theaters, hotels and duty free shops’ continued slump in performance, citing reduced demand, caused by stricter regulations on overseas travel and gatherings.

Banks warned of rate hikes

Regarding its outlook for Korean financial companies, Moody’s said in a separate press conference a day earlier that potential interest rate hikes will be the key risks for domestic banks next year.

According to the U.S. credit rating agency, Korea’s rate hikes will weigh on businesses and households here, both of which have shown high debt ratios lately.

“The extension of debt maturity has allowed banks to maintain their asset qualities, but changing economic conditions and government policies in the future could have a significant impact on their asset qualities,” Moody’s senior analyst Ok Tae-jong said.

Moody’s, however, predicted that the overall profitability of domestic banks will remain stable, because the growth of their net interest margins, caused by interest rate hikes, can offset their rising credit costs.

News Related

OTHER NEWS

Samsung Life Insurance weighed down by legal disputes

Samsung Life Insurance’s headquarters in southern Seoul / Yonhap Court rules in favor of policyholders of insurer’s immediate annuity contract By Kim Bo-eun Samsung Life Insurance has been mired in ... Read more »

VIXX's Ravi to release new album 'Love&Fight,' Feb. 8

By Dong Sun-hwa The teaser for Ravi’s upcoming album, “Love&Fight” / Courtesy of GROOVL1N Ravi of K-pop boy group VIXX is poised to drop his second full-length album, “Love&Fight,” on ... Read more »

Political films to hit theaters ahead of 2022 presidential election

A footage of Kim Dae-jung delivering a speech in the documentary film “President” / Courtesy of Blue Film Works By Kwak Yeon-soo With only seven weeks before the 20th presidential ... Read more »

NCT 127's 'Sticker' stays on Billboard chart for 17-consecutive weeks

NCT 127 / Courtesy of SM Entertainment By Dong Sun-hwa “Sticker,” the third studio album by NCT 127 ― a sub-unit of K-pop boy group NCT ― is showing its ... Read more »

Hyundai Samho's IPO plan angers investors in parent firm

Hyundai Samho Heavy Industries’ shipyard in Yeongam, South Jeolla Province. Courtesy of Hyundai Samho Heavy Industries Irregular worker’s death jeopardizes shipbuilder’s ESG rating By Park Jae-hyuk Minority shareholders of Korea ... Read more »

'Hyundai Motor shows no signs of rebound in China'

Hyundai Motor plans to sell its first plant in Beijing, after suspending its operation in 2019, as demand for its cars in China has been falling since 2017. Korea Times ... Read more »

Director Joung Yumi's 'House of Existence' selected for Berlinale Shorts

By Kwak Yeon-soo The poster for the film, “House of Existence” / Courtesy of KOFIC Director Joung Yumi’s “House of Existence” was selected for the Berlinale Shorts competition of this ... Read more »

Retail investors in biotech on verge of losing money over chilled market sentiment

SillaJen is one of the companies in the medical care and pharmaceutical sectors that are embroiled in financial scandals this year. Korea Times file By Yi Whan-woo Retail investors in ... Read more »

Kakao names Namkoong Whon as new CEO

Namkoong Whon, new CEO of Kakao / Courtesy of Kakao Kakao, the operator of Korea’s top mobile messenger KakaoTalk, said Thursday it has named Namkoong Whon as its new CEO, ... Read more »

Pregnant women face dilemma over COVID-19 vaccinations

Getty images By Bahk Eun-ji Concerns among pregnant women are growing as they are not included as eligible for the government’s vaccine pass exemption. The Central Disease Control Headquarters said ... Read more »

From TREASURE to Apink, a wave of K-pop stars to drop new songs next month

By Dong Sun-hwa A slew of K-pop stars including GOT the beat and Kep1er electrified their fans with their new music offerings in January. February is set to be another ... Read more »

Korea aims to become world's 5th biggest metaverse market by 2026

gettyimagesbank The government unveiled a long-term road map to foster its metaverse industry Thursday, with the aim of becoming the world’s fifth-largest market over the next five years.Under the plan, ... Read more »

Daily cases jump to over 6,000 for 1st time in nearly a month amid Omicron woes

A medical worker in a booth takes a nasal sample from a man at a makeshift COVID-19 testing site in Seoul, Jan. 19. AP-Yonhap Daily new COVID-19 infections jumped to ... Read more »

Hyundai, US firm join hands for battery development

gettyimagesbank Hyundai Motor said Thursday it has partnered with U.S. quantum computer firm IonQ for battery development. The partnership will allow Hyundai Motor to use IonQ’s quantum computers to develop ... Read more »

Seo Kang-jun, Kim A-joong hunt down mysterious assailant in Disney+ series 'Grid'

Actor Seo Kang-jun in a scene from Disney+ series “Grid” / Courtesy of Disney+ By Kwak Yeon-soo Actor Seo Kang-jun is currently serving his mandatory military service, but his absence ... Read more »

POSCO chief apologizes for worker's death in steel mill accident

A worker died at a plant of South Korea’s top steelmaker POSCO on Thursday after being hit by a coal-moving vehicle, police said. The 38-year-old worker, affiliated with a service ... Read more »

NH Financial Group to prioritize ESG and digital business

NH Financial Group Chairman Son Byung-hwan, fifth from left, poses for a photo along with the CEOs of the group’s affiliates, after holding a strategic management meeting at the group’s ... Read more »

'Parasite' director preparing to adapt sci-fi novel into film with Warner Bros.

Filmmaker Bong Joon-ho / Korea Times file Oscar-winning filmmaker Bong Joon-ho will likely come back with an English-language movie based on an unpublished U.S. science-fiction novel on clones, with Hollywood ... Read more »

POSCO's spinoff plan undermined by minority shareholders

POSCO’s flag hangs on its building in Seoul in this file photo. Courtesy of POSCO By Park Jae-hyukPOSCO is still facing uncertainties about its ambitious plan to restructure itself as ... Read more »

Lotte acquires Ministop's Korean operations

A Ministop convenience store in Seoul / New1 Lotte, the holding company of Korean retail giant Lotte Group, said Friday it has acquired a 100-percent stake in Ministop Korea for ... Read more »

External risks weigh on Korea's economic recovery

Electronic signboards in a Hana Bank dealing room in Seoul show intra-day trading of the benchmark KOSPI, the won-dollar exchange rate and the tech-heavy KOSDAQ, Friday. Yonhap US, China factors ... Read more »

Ji Sung, Seo Ji-hye to co-star in new thriller series

Actors Ji Sung, left, and Seo Ji-hye will play the lead roles in tvN’s new series, “Adamas.” Courtesy of Breitling Korea, Culture Depot By Lee Gyu-lee Actors Ji Sung and ... Read more »

AGS Transact Technologies IPO sees 1.68 times subscription, QIB portion booked 49% on final day

AGS Transact Technologies IPO The maiden public offer of AGS Transact Technologies, one of the largest integrated omnichannel payment solutions providers in India, is subscribed 1.68 times as it received ... Read more »

Persistent Systems share price rises 6% on better Q3 numbers

Persistent Systems share price gained 6 percent intraday to trade at Rs 4,500 on January 21 after the company showed improved performance for the quarter ended December 2021. Persistent Systems ... Read more »

Asian Paints Results | Should you buy, sell or hold the stock after Q3 earnings?

Asian Paints share price declined 2 percent in early trade on Friday after the company came out with its December quarter results. Asian Paints on January 20 reported a consolidated ... Read more »

Gainers & Losers: Top 5 stocks that moved the most on January 21

India’s equity benchmarks ended in the red but off the day’s low. The Sensex was down 427.44 points, or 0.72%, at 59037.18, and the Nifty shed 139.80 points, or 0.79%, ... Read more »

JSW Steel share price slips ahead of December quarter earnings

JSW Steel share price slipped 2 percent intraday to Rs 666 on January 21, with the steelmaker set to announce its December quarter earnings later in the day. JSW Steel ... Read more »

Mphasis share price gains after Q3 profit rises to Rs 357.6 crore, Morgan Stanley sees 26% upside

Mphasis share price added more than 3 percent in the morning session on January 21, a day after the company declared its third quarter earnings. The IT firm on January ... Read more »

JSW Steel Q3 results | Net profit rises 62.5% YoY to Rs 4,357 crore, revenue grows to Rs 38,071 crore

JSW Steel Ltd, India’s second-largest steel manufacturer, on January 21 reported a consolidated net profit of Rs 4,357 for the quarter ended December 2021, registering a 62.5 percent year-on-year (YoY) growth ... Read more »

Moneycontrol Pro Panorama | Rural demand fails to shape up. Will the Budget step up?

Representative Image (Source: Reuters) Dear Reader, The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives ... Read more »

Domestic brokerages bet on these 10 largecaps for 13-32% return

Indian benchmark indices saw selling pressure for the fourth consecutive day with BSE Sensex and Nifty down nearly 4 percent each. The notional wealth of equity investors has suffered an ... Read more »

Daily Voice | Market can give double-digit returns, but Nifty rising above 21,000 looks unlikely in 2022: Kamal Manocha of PMS AIF World

From the perspective of equity markets, Kamal Manocha, founder & CEO of PMS AIF World, says if long term capital gain tax on equity investments is increased in Budget 2022 ... Read more »

Gold Prices Today: Yellow metal to edge higher, experts suggest buy on dips

Gold prices were muted on January 21 in the international markets and were on course for a second consecutive weekly gain as investors turned to safe-haven assets while awaiting signals ... Read more »

Early Q3 earnings point to margin pressure, trend may continue in Q4

Early trends of third-quarter company results indicate that high input costs continue to be a bugbear. Profit margins moderated for yet another quarter even as earnings were mostly in line ... Read more »

HUL Results | Should you buy, sell or hold the stock after Q3 figures?

Hindustan Unilever (HUL) share price rose in the early trade on January 21 – a day after the company reported its December quarter earnings. Hindustan Unilever reported a 16.8 percent on-year ... Read more »

Assembly speaker seeks support for Korean businesses in Sri Lanka

National Assembly Speaker Park Byeong-seug and Sri Lankan President Gotabaya Rajapaksa pose for camera in their meeting in Sri Lanka on Thursday. (National Assembly Speaker’s Office)National Assembly Speaker Park Byeong-seug ... Read more »

New Kakao CEO faces daunting tasks

Company has long way to go to restore public trust and investor confidence By Baek Byung-yeul NamKoong Whon, Kakao’s new CEO. Courtesy of Kakao Namkoong Whon, the newly appointed chief ... Read more »

SNL Korea becomes popular platform for actors to show off their goofy sides

Actress Shin Hae-sun in a scene from the comedy show “SNL Korea” / Screenshot from Coupang Play’s YouTube channel By Kwak Yeon-soo The second season of the revived “Saturday Night ... Read more »

Relocation of state-run banks as election pledge unnerves employees again

The sign of the Korea Development Bank (KDB) is located in front of its headquarters in Seoul. KDB is among several public financial institutions that presidential candidates say they plan ... Read more »

Samsung hints at Note in new Galaxy S series

Roh Tae-moon, president and head of MX Business at Samsung Electronics / Courtesy of Samsung Electronics By Baek Byung-yeul Samsung Electronics’ Galaxy Note series, which skipped release in 2021, is ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic