Homeplus "Did Not Anticipate Credit Rating Downgrade... Financial and Business Indicators Improved"

Statement Released on the 9th Rebuts Some Reports
"Sales Increased by 100 Billion KRW... Debt Ratio Improved by 1500%"

Homeplus has denied some reports claiming that it issued commercial paper (CP) just before filing for corporate rehabilitation in anticipation of a credit rating downgrade.

On the 9th, Homeplus released a statement saying, "During last year's credit evaluation, key financial indicators significantly improved compared to the previous year, and the establishment of a mid- to long-term business foundation was completed, leading to improvements in various business indicators. Therefore, we expected continuous improvement in future sales and operating profitability," adding, "We did not anticipate a credit rating downgrade in this credit evaluation."

Homeplus particularly emphasized improvements in financial and business indicators.

The company stated, "In terms of financial indicators, sales increased by approximately 100 billion KRW compared to the previous year, making us the only one among the three major large marts to achieve three consecutive years of growth. Additionally, as of January 31 this year, the debt ratio improved by about 1500% compared to the previous year, reaching 462%," and "Regarding business indicators, sales at Homeplus Mega Food Market stores, a food-specialized store launched since 2022, increased by an average of 20% annually, successfully revitalizing offline stores that had been shrinking due to the rapid growth of large e-commerce companies."

Regarding the online business, the company said, "By significantly strengthening online delivery competitiveness through customized and immediate delivery, online sales exceeded 1.5 trillion KRW, raising its share of total sales to 20%," and "We have established a solid growth foundation across all online and offline sectors." It added, "With the membership base expanding significantly to over 11 million members, we expected the growth trend to accelerate further."

Homeplus reiterated, "Significant improvements were made in all aspects of financial and business indicators, and since the sale of the supermarket business division was also underway, we did not expect a credit rating downgrade in this credit evaluation."

Homeplus explained, "Due to the unexpected one-notch downgrade in our credit rating, there was a high possibility of issues arising in securing short-term funds. To prevent damage to partners and leaseholders, we urgently prepared for rehabilitation and filed for rehabilitation procedures immediately on the 4th, after the holiday ended."

It continued, "We deeply apologize for the situation leading to this outcome, which we originally intended to avoid," and promised, "We will do our best to normalize all aspects, including the settlement of trade debts as soon as possible, and to repay all financial debts, including short-term debts, according to the rehabilitation plan."