Daewoo Shipbuilding & Marine Engineering Construction, a Subsidiary of Korea Technology, Achieves BBB+ Credit Rating with a Three-Grade Upgrade

[Asia Economy Reporter Jang Hyowon] Daewoo Shipbuilding & Marine Engineering Construction, a subsidiary of Korea Technology (CEO Shin Yonggu, Lee Byunggil), a KOSDAQ-listed company, announced on the 20th that it has obtained a BBB+ credit rating, rising three levels from its previous rating in the recent credit rating evaluation.

This improvement is attributed to solid fundamentals, successful aggressive orders in various fields including renewable energy-related construction, residential-commercial complexes, and logistics centers, which have led to an improved financial condition.

Additionally, the launch of the joint ESG Management Committee (Chairman Moon Gangbae) between Korea Technology and Daewoo Shipbuilding & Marine Engineering Construction, focusing on environmental, social contribution, and governance improvements, is also analyzed as a cause for the credit rating enhancement.

According to the credit rating certificate, Daewoo Shipbuilding & Marine Engineering Construction recorded a net loss of approximately 11 billion KRW at the end of 2019, but turned to a net profit of about 12 billion KRW by the end of last year, and operating profit increased nearly sevenfold compared to 2019, showing a significant rise.

Despite the difficulties in the construction industry due to the COVID-19 pandemic, the operating profit margin improved by more than 6%, showing an exceptional increase.

Seo Boknam, CEO of Daewoo Shipbuilding & Marine Engineering Construction, said, “The credit rating rose three levels as a result of solid fundamentals and strengthening internal stability,” adding, “This will facilitate loans for business in the future, lower interest rates, and create a virtuous cycle.”

He also stated, “Through this virtuous cycle, we aim to achieve the next level credit rating ‘A’ next year, and simultaneously achieve this year’s order target of 1.8 trillion KRW through innovation in the order process via the ESG Management Committee.”