DL E&C Maintains Top-Tier 'AA-' Credit Rating in Construction Industry for 7 Consecutive Years

Both Profitability and Financial Stability Proven
Operating Profit Up 33% in Q1, Net Cash Surpasses 1 Trillion KRW

DL E&C has received the highest credit rating in the construction industry for seven consecutive years from the three major credit rating agencies. The company has demonstrated outstanding financial stability and profitability even amid industry-wide challenges.

On June 30, DL E&C announced that it had obtained a corporate bond credit rating of 'AA- (Stable)' from Korea Ratings, NICE Investors Service, and Korea Investors Service. Since receiving its first credit rating in 2019, the company has never experienced a downgrade.

In this latest assessment, the three rating agencies cited the following as key factors: competitive strength based on market position and construction experience; a diversified business portfolio; and stable financial management focused on profitability. In particular, they stated, "The company is expected to maintain its current financial structure by securing excellent cash flow and liquidity."

In fact, DL E&C recorded an operating profit of 81 billion KRW on a consolidated basis in the first quarter of this year, marking a 33% increase compared to the previous year. The operating margin also improved by 1.3 percentage points to 4.5%.

The company’s financial indicators remain solid. As of the end of the first quarter, DL E&C held 2.1263 trillion KRW in cash and cash equivalents, and 1.0202 trillion KRW in net cash. The debt ratio stands at 102.8%, and the dependency on borrowings is only 11%. The current ratio is also healthy at 154%.

Project financing (PF) guarantees are also stable. As of the first quarter, the scale of PF guarantees was approximately 1.55 trillion KRW, with 860 billion KRW related to urban renewal projects. The company explained, "Since we raise funds primarily through long-term financing, there is essentially no refinancing risk." In addition, there are no unsold units after project completion, so there is no concern about additional financial burdens.

A representative from DL E&C’s Financial Management Office stated, "We are navigating the industry’s uncertainties through profitability-focused, sound management and thorough risk control," adding, "We will continue to accelerate performance improvement based on a stable financial structure."