Following NICE Investors Service, Korea Ratings Also Assigns 'A' Grade
Outlook Remains 'Stable'
Positive Evaluation for Improved Sales and Operating Profitability
Daehan Electric Wire has demonstrated its business stability and financial soundness through an upgrade in its credit rating.
On July 10, Daehan Electric Wire announced that it had received a corporate credit rating (ICR) of A with a "Stable" outlook from Korea Ratings, one of the country’s major credit rating agencies. This marks an improvement from the A- with a "Stable" outlook that the company received in 2023.
Korea Ratings assigned this rating based on Daehan Electric Wire’s stable business foundation, growth in scale, steady profitability, and improved financial structure. In its report released on the same day, the agency stated, "Daehan Electric Wire has established a stable business base through a diverse product portfolio and is pursuing further product diversification, including the expansion of high value-added businesses such as submarine cables and optical cables."
Korea Ratings also analyzed that "despite the price volatility of copper, the primary raw material, the company has maintained a relatively stable operating margin through its vertically integrated production structure." The agency further noted, "Since being acquired by Hoban Group, Daehan Electric Wire’s financial structure has improved through financial support and paid-in capital increases, and the company is expected to maintain financial stability using funds from the paid-in capital increase and cash flow generated from operations."
The agency also highlighted the increase in order backlog due to new orders in overseas markets such as Singapore, the United Kingdom, and Sweden, adding, "On a consolidated basis, net debt decreased significantly from KRW 456.7 billion at the end of 2021 to negative KRW 126.1 billion at the end of March 2025, reflecting a substantial improvement in the overall financial structure."
Daehan Electric Wire emphasized that this rating upgrade is especially significant because the credit rating was raised without first adjusting the outlook. Typically, the outlook is first changed to "Positive" to signal a potential upgrade before the rating itself is raised. However, this time, Korea Ratings maintained the outlook at "Stable" while immediately upgrading the credit rating, reflecting Daehan Electric Wire’s enhanced external credibility.
Previously, last month, NICE Investors Service also maintained Daehan Electric Wire’s credit rating at "A(Stable)," the same as last year, and delivered a positive assessment.
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