The credit rating of South Korean firms has dwindled since 1998

The credit rating of South Korean firms has dwindled since 1998


Only eight companies in South Korea, according to evaluation of the Corporation “Korea Ratings” in this year improved its performance. To the greatest extent since the economic downturn of 2008 has hurt the South Korean construction and shipbuilding companies.

TOKYO, 7 Dec. Ivan Zakharchenko. A number of 58 South Korean companies experienced declines in credit ratings this year due to low demand within South Korea and abroad, has informed on Monday news Agency Yonhap.

According to him, this is the largest reduction in the credit rating of South Korean companies since the Asian crisis of 1998.

The Agency cites data assessment Corporation “Korea Ratings” that only eight companies in South Korea this year improved their performance.

To the greatest extent since the global recession in 2008 affected South Korean construction and shipbuilding companies.

The situation, as noted by the Agency, has raised fears of rising borrowing costs for other companies that wish to raise capital through the sale of debt, in connection with the slowdown of the Chinese economy and rising interest rates in the US.

Yonhap quotes an expert opinion from the Corporation “Korea Ratings” Sohn Tae-Jung that “the global recession is either increased burden on the company, or the polls worsened performance of credit ratings”.

“The market is also concerned about the possibility of a chain reaction from a potential increase in lending rates in the USA”, — quotes Agency the findings of Sohn Tae-Jung.