이 누리집은 대한민국 공식 전자정부 누리집입니다.
Biz News Korea(Eng)
Overseas credit ratings of major Korean firms are widely different from domestic ones
- Collected
- 2016.05.13
- Distributed
- 2016.05.16
- Source
- Go Direct
Seoul Credit Rating & Information Inc. (SCI) said that Posco, Lotte Shopping Co., E-Mart Inc., S-Oil Corp., SK Innovation Co. LG Electronics Inc. and GS Caltex Corp. have a discrepancy of seven notches in their credit ratings given in Korea and overseas.
These companies are rated at BBB or BBB- by international rating agencies such as Standard & Poor`s Financial Services LLC. (S&P) and Moody’s Investors Service Inc, while they are rated at AA or higher in Korea.
Technically, a difference of three to four notches occurs between domestic and overseas ratings because the starting point of rating varies. Global agencies rate Korean companies based on the country’s sovereign credit rating at AA-, whereas Korean rating agencies use the top grade of AAA as their basis.
However, the wide gap beyond the generally accepted difference suggests that the credibility of Korean companies may not be properly reflected in the domestic evaluation.
Korea’s sovereign rating rose by two notches over the past five years, while the overseas credit ratings of seven of 14 large Korean companies declined.
SCI said Korean credit rating agencies are relatively cautious in changing credit ratings purely based on earnings and financial health.
Kim Hyun, an SCI official said that the Korean market is more tolerant than global markets when it comes to the criteria for investment grade ratings and the current system needs to be adjusted to help companies strengthen their ability to cope with a crisis.
By Chun Gyung-woon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]