According to the industry on the 22nd, Korea Investors Service upgraded Paradise’s corporate bond credit rating to A+ (stable) from A (positive) in its eighth corporate bond rating review. NICE Investors Service also reaffirmed the A+ (stable) rating it assigned in October last year, again citing the company’s strong financial health.
◆ Casino gains, hotel deals seen supporting earnings and growth
The upgrade was attributed to three factors: improved performance driven by rising casino demand; expectations for revenue growth through hotel acquisitions and new hotel construction; and expanded investment supported by a solid financial base.
Paradise posted 1.1499 trillion won in revenue last year, up 7.3% from a year earlier. The company benefited from higher drop amounts from both Japanese VIP and mass-market customers, analysts said. The acquisition of the Grand Hyatt Incheon West Tower, a 501-room property, was cited as a key driver for sustaining future revenue growth.
◆ Debt ratio at 84.4% despite investment push
Despite large-scale investment, Paradise’s financial indicators have remained strong. Borrowing is expected to rise due to new projects, including a flagship hotel development in Jangchung-dong, Seoul, but annual operating cash flow of about 200 billion won is supporting the funding needs.
As of 2025, net debt fell 61 billion won from the end of the previous year to 377.3 billion won. The debt ratio stood at 84.4%, and the borrowing dependence ratio was 29.5%, levels viewed as reflecting a stable financial structure.
NICE Investors Service pointed to the durability of results centered on the integrated resort Paradise City and stronger customer attraction from new hotel acquisitions. It said capital expenditures and working-capital burdens were manageable relative to cash generation.
A Paradise official said the upgrade reflected the market’s high assessment of the company’s business performance and future value. “Based on the improved credit standing, we will strengthen our funding competitiveness and contribute to the development of Korea’s tourism industry,” the official said.
* This article has been translated by AI.
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