Ssangyong C&E, Credit Rating Upgraded to 'A0'

Excellent Cash Generation, Financial Structure, and Profitability Improvement Trend Receive Positive Evaluation

Exterior view of Ssangyong C&E Donghae Plant. [Photo by Ssangyong C&E]

[Asia Economy Reporter Kim Jong-hwa] Ssangyong C&E's unsecured bond credit rating has been upgraded to 'A0 (Stable)'.

Ssangyong C&E was recently upgraded one notch from 'A- (Positive)' to 'A0 (Stable)' in the credit rating evaluation conducted by Korea Ratings.

In this regular evaluation, Ssangyong C&E received favorable assessments for △expanding cash generation capacity based on the operation of new facilities and enhanced cost competitiveness △improved profitability outlook due to profit generation in the environmental sector △maintaining excellent financial structure despite facility investments and dividend payments △leading market position in the domestic cement industry and superior production efficiency.

Since 2018, Ssangyong C&E has made large-scale investments to expand the use of recycled resources such as waste synthetic resin to replace fossil fuel bituminous coal. By fully operating waste heat power generation facilities and energy storage systems (ESS), it secured industry-leading cost competitiveness, achieving an operating profit margin of 17% (KRW 250.2 billion) on a consolidated basis in 2020, and EBITDA increased to KRW 447 billion.

Ssangyong C&E's credit rating has been continuously upgraded from BBB+ in 2015 to A- in 2017, and to A0 this year.

A Ssangyong C&E official said, "This credit rating upgrade is the result of steady cost reduction efforts and large-scale investments for environmental improvement despite challenging management conditions such as decreased domestic cement demand and rising raw material prices," adding, "We will continue to strengthen corporate competitiveness through expanding eco-friendly investments via ESG management."

Meanwhile, Ssangyong C&E recently declared its leap to a comprehensive environmental company along with a name change, accelerating ESG management and eco-friendly investment movements by becoming the first in the cement industry to obtain the highest green bond certification grades 'GB1' and 'G1' from Korea Ratings and Korea Investors Service.