Moody“s Investors Service has assigned Kumgang Korea Chemical Co. (KCC) an issuer rating of Baa3. It was the first time that Moody“s has assigned a rating for KCC, the outlook of which is now stable…
Moody“s Investors Service has assigned Kumgang Korea Chemical Co. (KCC) an issuer rating of Baa3. It was the first time that Moody“s has assigned a rating for KCC, the outlook of which is now stable. In a press release on 15 May, Moody“s said that the rating reflects KCC“s leading market position, with long term customer relationships (including strong links with the strategically-important automobile industry); diversified lines of business with stable operating performance; sound financial profile and conservative management; as well as good access to domestic banks and capital markets. It added that the rating also takes into account the risks associated with KCC“s high concentration of revenue in the Korean construction industry and the Hyundai Group companies, and the moderate refinancing risk inherent in most Korean companies. Moody“s estimated that KCC“s overall cash flow would improve by focusing on higher-value-added products in its core businesses, such as industrial paint and glass. KCC recently established a joint venture with Asahi Glass for the production and sale of automotive safety glass in Korea. Moody“s said this alliance will help KCC improve its R&D capabilities and growth potential as a global supplier of safety glass to major automobile manufacturers over the long term.