DL E&C Obtains Top Construction Industry Ratings from Three Major Credit Rating Agencies

[Asia Economy Reporter Onyu Lim] DL E&C (formerly Daelim Industrial) has been recognized for its financial stability and growth potential by obtaining one of the highest credit ratings in the construction industry.

On the 16th, according to DL E&C, NICE Credit Rating evaluated the company as "maintaining an excellent level of operating income centered on the housing business" and assigned a credit rating of AA- with a ‘stable’ outlook. Through this, DL E&C received the AA- credit rating with a ‘stable’ outlook from all three major domestic credit rating agencies: Korea Ratings, Korea Investors Service, and NICE Credit Rating.

All credit rating agencies assessed DL E&C’s business stability as excellent based on its top-tier market position in the industry and cost management capabilities. Furthermore, they noted that the company has secured a strong financial structure and is expected to maintain its current level of financial stability. Despite being a newly established corporation, it was assigned the same credit rating as Daelim Industrial before the split.

DL, which launched as a holding company system in January this year, plans to focus the group’s capabilities in construction, petrochemicals, and energy to develop growth strategies for each sector and nurture new growth engines. In particular, DL E&C aims to innovate productivity by integrating digital innovation technologies into the construction industry and grow as a total solution provider centered on developers. With premium brand power and the highest level of credit rating in the industry, the company has established a solid foundation to pursue various developer projects with optimized financial procurement costs.

Based on pre-split figures, DL E&C achieved sales of KRW 10.265 trillion and operating profit of KRW 1.1781 trillion last year. Despite the challenging business environment due to the COVID-19 pandemic, the construction business recorded a separate operating profit of KRW 741.3 billion, playing a key role in achieving the highest level of operating profit ever. In particular, the housing business showed the industry's best profit margin, becoming the source of profitability. DL E&C has set management goals for this year of KRW 7.8 trillion in sales, KRW 830 billion in operating profit, and KRW 11.5 trillion in new orders.