Daehan Electric Wire Upgraded to Credit Rating A... Recognized for 'Stable Business and Operating Profitability'

NICE Credit Rating Assigned Grade A
Business Stability and Continuous Sales Growth Trend
Positive Evaluation Including Improved Financial Structure

Daehan Electric Wire announced on the 26th that it received a corporate credit rating (ICR) of A and a rating outlook of 'Stable' from NICE Credit Rating. With this, Daehan Electric Wire's rating has risen for the first time in two years since receiving an 'A-' from Korea Ratings in 2022, proving its increased external credibility.

Exterior view of Daehan Electric Wire Dangjin Plant. Photo by Daehan Electric Wire

The corporate credit rating evaluates a company's overall business profitability and debt repayment ability. It is generally conducted to gauge the company's external credibility. After being incorporated into the Hoban Group, Daehan Electric Wire conducted this evaluation to confirm its creditworthiness and enhance customer trust by establishing a stable business and financial environment.

NICE Credit Rating stated that the evaluation considered business stability based on a diverse product portfolio, a continuous trend of sales growth, stable operating profitability, and significantly improved financial stability. The report analyzed, "Daehan Electric Wire maintains its market position based on decades of delivery experience, proven stability, and operational efficiency, and is in the process of expanding its product lineup to include 500kV-class submarine cables," and explained, "It is judged to have high business stability based on diversified demand sources grounded in a wide range of product groups."

It continued, "Sales are expected to continue increasing as orders expand to power authorities and power companies in various countries such as the United States, Europe, and the Middle East," and wrote, "Fluctuations in copper prices are easily reflected in product selling prices, maintaining stable operating profitability." It also added, "The financial structure has greatly improved through a paid-in capital increase." In fact, Daehan Electric Wire's net borrowings decreased significantly from 456.7 billion KRW in 2021 to -399.5 billion KRW as of the end of March. The debt ratio stands at 79.2%, and the net borrowings dependency ratio is -15.5%, both at excellent levels.

A Daehan Electric Wire official commented on the evaluation results, saying, "This is the result of swiftly pursuing investments to strengthen global order competitiveness and secure future growth engines to enhance corporate and shareholder value," and expressed expectations, "As we are concretizing businesses such as submarine cables and HVDC cables, which we are currently focusing on investing in, we expect to be evaluated at an even higher value in the future."