DL Construction Obtains Credit Rating A- 'Stable'... "Expanding Business Base Through Merger"

[Asia Economy Reporter Onyu Lim] DL Construction continues its credit rating upgrade trend following last year's merger. On the 22nd, DL Construction announced that it received a credit rating of ‘A-’ with a ‘Stable’ outlook from Korea Ratings. Korea Ratings had rated DL Construction’s credit rating as ‘BBB+’ with a ‘Positive’ outlook in November last year, upgrading the credit rating by one notch within five months.

According to Korea Ratings, “DL Construction’s business stability is sound based on improved order competitiveness, expanded business foundation through the merger, and sustained excellent profitability from housing business progress.” It also stated, “With expected diversification of the business portfolio, financial soundness based on solid cash flow is expected to be maintained.”

DL Construction’s new orders last year amounted to KRW 3.268 trillion, a 202% increase compared to 2019, and its order backlog recorded KRW 5.4493 trillion, a 121% increase compared to 2019. In particular, by achieving KRW 1 trillion in urban maintenance project orders, it demonstrated order competitiveness in medium- to large-scale projects in the metropolitan area and provincial metropolitan cities.

The financial structure is also stable. The debt ratio was maintained at a low level of 86.9% compared to peers, with zero PF contingent liabilities and net borrowings of negative KRW 465.1 billion, showing the industry’s highest level of financial soundness.

At this year’s regular general meeting of shareholders, DL Construction emphasized its plan to transform its business structure into a developer to become a ‘comprehensive real estate development solution provider,’ to increase execution power for stable profit generation through market share expansion, and to diversify its portfolio. The recent credit rating upgrade is expected to accelerate business diversification and market share expansion.

A DL Construction official said, “Following the credit rating upgrade, we plan to actively pursue new business discovery linked to existing businesses and new high-profit businesses, and maintain financial soundness through strengthened risk management to continue sustainable growth.”