DL E&C Maintains Top Construction Industry Credit Rating 'AA-' for 6 Consecutive Years

DL E&C has received the highest credit rating in the construction industry for six consecutive years.

Photo by DL E&C

DL E&C announced on the 2nd that it received an 'AA- (Stable)' corporate bond credit rating from Korea Ratings, Korea Investors Service, and NICE Investors Service. Since first receiving the 'AA-' rating in June 2019, it has maintained this rating for six consecutive years.

The three major credit rating agencies cited DL E&C's excellent market position and business competitiveness based on construction experience, a stable business foundation supported by a diverse portfolio and abundant order backlog, and financial stability capable of responding to changes in the external environment as the basis for their evaluation. They also forecast that DL E&C is expected to maintain its current level of financial stability based on stable cash generation in the future.

Despite the challenging management environment in the construction industry, DL E&C is focusing on solid management based on the industry's highest level of stable financial structure.

DL E&C has maintained a net cash position since 2021. As of the first quarter of this year on a consolidated basis, net cash stood at 1.2506 trillion KRW, an increase of 189.6 billion KRW compared to the end of last year. It holds 2.432 trillion KRW in cash and cash equivalents, and operating cash flow recorded 277.4 billion KRW. Due to thorough risk management, the debt dependency ratio is only 13.5%. The debt ratio also recorded 102.3%, the lowest level in the industry. Consequently, the proportion of foreign investors is also increasing. The foreign shareholder ratio of DL E&C rose from 18.6% in April 2022 to 29.6% in May this year.

A representative from DL E&C’s Financial Management Office said, "We will continue to pursue profitability-focused solid management and risk management to overcome the challenges of the construction management environment and focus on enhancing DL E&C’s corporate value."