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Korea expects more downgrades in credit ratings of businesses in 2023

Dozens of local businesses in South Korea will suffer a downgrade in their credit standings in 2023 in the wake of the economic slowdown as well as worsening liquidity in their financial statements. The prediction is based on the situation that three major credit rating agencies have recently increased the number of watch lists for potential downgrades. According to the lists held by Korea Investors Service, Korea Ratings, and NICE Investors Service, each firm has included 10 to 20 businesses in the candidate list for downgrading of their corporate bonds and commercial paper. NICE Investors Service has recently included several units of Lotte Group in the list for feasible downgrades. HDC Hyundai Development and HDC holdings have been included in the watch list by both Korea Investors Service and Korea Ratings.

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