DL Geonseol Achieves Highest HUG Credit Rating 'AAA' for 7 Consecutive Years

DL Construction announced on the 27th that it has obtained the 'AAA' rating in the recent regular credit rating evaluation conducted by the Housing and Urban Guarantee Corporation (HUG). With this, DL Construction has maintained the highest rating for seven consecutive years since 2018.

DL Construction CI / Image provided by DL Construction

The HUG credit rating is calculated based on key financial indicators and financial ratios over three years according to HUG's internal standards. The ratings are divided into 15 levels, ranging from the highest grade AAA to the default grade D.

The evaluation items are divided into financial and non-financial models. The financial model assesses the company's financial soundness based on factors such as 'debt repayment ability,' 'productivity,' 'activity,' and 'profitability.' The non-financial model calculates the rating by considering qualitative factors affecting corporate management activities, such as 'economic outlook,' 'construction capability,' 'sales competitiveness,' 'business prospects,' and 'representative credit risk.'

This rating is used to determine HUG's guarantee fee rates (including construction guarantees and subcontract payment guarantees), loan interest rates, guarantee limits, approval authority for guarantees, and guarantee review standards.

Meanwhile, DL Construction received an 'A- (Stable)' rating in the corporate credit rating (ICR) category from Korea Ratings and Korea Credit Rating in March.