HiteJinro Upgrades Corporate Bond Credit Rating Outlook to 'Positive'

[Asia Economy Reporter Seungjin Lee] HiteJinro's domestic credit rating outlook has been upgraded.

HiteJinro announced on the 17th that as a result of the regular evaluation by NICE Credit Rating, the rating outlook was upgraded one notch from the previous 'A (Stable)' to 'A (Positive)'. With this, following the 'Positive' credit rating outlooks from Korea Ratings (last December) and Korea Investors Service (this February), HiteJinro has received a 'Positive' evaluation from all three domestic credit rating agencies.

This credit rating upgrade is analyzed to be due to the company solidifying its market position as the number one in the soju industry with competitive products such as 'Chamisul' and 'Jinro', along with the strong sales of the beer 'Terra' leading to operating profit gains, resulting in increased market shares for both beer and soju. Additionally, the improvement in the liquor market following the recovery from COVID-19 and the outlook for improved financial structure positively influenced the evaluation.

HiteJinro recorded sales of 535 billion KRW and operating profit of 52.9 billion KRW through the first quarter of this year, exceeding market consensus despite restrictions on operating hours for entertainment establishments. Last year, HiteJinro's sales reached 2.2563 trillion KRW and operating profit was 198.5 billion KRW, marking the highest figures since the merger of Hite Beer and Jinro in 2011.

A HiteJinro official stated, "Having received a 'Positive' outlook from all three domestic rating agencies, we expect the credit rating to be upgraded to A+ in the future," and added, "As a leading liquor company approaching its 100th anniversary, we will continue to maintain a stable growth foundation by leveraging the excellent product competitiveness of Chamisul, Jinro, Terra, and others."