Korea Ratings Revises BS Hanyang's Rating Outlook to 'Negative'

Korea Ratings announced on May 13, 2025, that it has revised the outlook for BS Hanyang's unsecured bond rating from 'Stable' to 'Negative'. However, the credit rating itself remains at 'BBB+'.

Korea Ratings explained that the downgrade is due to increased financial burden resulting from capital requirements related to affiliate development and energy businesses, as well as working capital needs. The agency also stated that a volatile financial structure is expected to persist for the time being, citing ongoing working capital pressures and loans to affiliates.

Additionally, Korea Ratings noted that external borrowing has increased significantly due to equity investments and loans related to affiliate development projects and energy businesses such as biomass and LNG (liquefied natural gas) terminals. The agency added that it will focus on monitoring the timing and extent of financial structure improvement through the recovery of loans to affiliates and investments in energy businesses in the future.