- 'A-' by S&P, 'A3' by Moody's—Positive Factors Include Business Stability, Financial Stability, and Global Business Growth
SEOUL, South Korea, Jan. 8, 2025 /PRNewswire/ -- On the 7th, KT&G Corporation ("KT&G") (KRX:033780), South Korea's leading tobacco manufacturer, announced that it has been assigned A-(Stable) and A3 (Stable) ratings by two of the top three global credit rating agencies, S&P and Moody's, respectively.
The "A-" rating is a high credit quality rating denoting a good credit status and very low credit risk. KT&G's rating is a top rating among major Korean companies that are not public enterprises or financial institutions, and is equivalent to the ratings of leading global tobacco companies. The "A3" rating from Moody's is also a top rating among Korean companies, and recognizes KT&G's sound financial stability.
Global credit rating agencies determined that KT&G had high business stability, based on a dominant position in the Korea's tobacco market. Stable profit generation and low financial leverage ratio were also positive factors. Furthermore, KT&G's outstanding performance in the NGP (Next Generation Products) sector and diverse portfolio spanning across ginseng and other non-tobacco sectors were also highly rated.
Global credit rating agencies were particularly interested in KT&G's global business growth, and went on to state that KT&G's global business can expect further expansion based on KT&G's growth investment such as establishment of new factories in Indonesia and Kazakhstan.
In June 2023, KT&G received "AAA(Stable)" issuer credit ratings from the three major Korean ratings agencies, Korea Ratings, Korea Investor Service, and NICE Investor services.
KT&G's spokesperson said that "global credit rating agencies recognizes KT&G's faithful execution of mid-to-long term vision plans and financial stability" and that "going forward, KT&G will continue its effort to build a stable financial structure based on high credibility, and will invest in the core businesses in line with its 'leap to a Global Top-tier' vision."