DL E&C announced on July 8 that it has maintained its corporate bond credit rating of 'AA-(Stable)' from NICE Investors Service and Korea Ratings, and has achieved the highest rating of 'A1' for its commercial paper from Korea Ratings.
NICE Investors Service evaluated DL E&C's diversified business portfolio, strong competitive edge, and stable business foundation as key strengths. The agency particularly noted the recovery in profitability due to improved cost rates in the housing sector, stable cash generation, and strong financial stability, predicting continued stable performance in the future.
Korea Ratings also assessed the company’s balanced business portfolio across civil engineering, housing, and plant sectors, along with the competitiveness of its brands 'ACRO' and 'e-Pyeonhansesang,' indicating high business stability. The agency analyzed that profitability improvements are ongoing due to stabilized cost rates in the housing sector.
Both credit rating agencies highlighted that cost rate improvements are driving performance recovery. They noted that the revenue share from projects reflecting increased costs is expanding, and the profitability improvements centered on maintenance projects are contributing to the recovery of profitability in the housing sector, with expectations for stable performance in the future.
The assessment of financial soundness was also positive. Korea Ratings stated that DL E&C maintains approximately 1.3 trillion won in net cash, ensuring sufficient financial capacity. The company has a financial structure that allows it to respond flexibly to market volatility based on stable cash generation.
NICE Investors Service also cited smooth cash generation and strong financial stability as advantages. Korea Ratings evaluated that the company has secured liquidity sufficient to meet short-term funding needs based on its cash reserves and operating cash generation.
A DL E&C representative stated, "This credit rating evaluation is a recognition of our stable business foundation and financial management capabilities by major domestic credit rating agencies. We will continue to strengthen our sustainable growth foundation based on a solid financial structure."
Meanwhile, DL Construction also announced on July 7 that it has maintained its corporate credit rating and commercial paper (CP) rating from major credit rating agencies. Korea Ratings has maintained its corporate credit rating of 'A-(Stable)' for six consecutive years, while NICE Investors Service has maintained its CP rating of 'A2-' for three consecutive years.
* This article has been translated by AI.
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