On January 7, KT&G (President & CEO Bang Kyung-man)
announced that it had received credit ratings of A- (stable) from S&P and
A3 (stable) from Moody’s, two of the three leading global credit rating
agencies.
S&P’s A- rating reflects strong credit
quality and low credit risk. This rating is the highest among major Korean
conglomerates, excluding public enterprises and financial institutions, and is
on par with the top global tobacco companies. The A3 rating from Moody’s also
places KT&G at the highest level among Korean conglomerates, further
recognizing the company’s solid financial stability.
The agencies have praised KT&G for its
strong business stability, including its dominant market position in the
tobacco industry, as well as its ability to generate stable profits and
maintain low financial leverage. They also highlighted KT&G’s impressive
performance in the next-generation products (NGP) of the electronic cigarette
sector and its successful diversification into non-tobacco businesses, such as
ginseng.
Of particular note, global agencies have
acknowledged KT&G’s expanding international presence, suggesting prospects
of continued overseas business growth driven by investments like the
establishment of new factories in Indonesia and Kazakhstan.
In June 2023, KT&G earned an AAA (stable)
rating from Korea Ratings (KR), Korea Investors Service (KIS), and NICE
Investors Service, the three major corporate credit rating agencies in South
Korea.
An official from KT&G commented, “Despite
growing uncertainties in both domestic and international sectors, global credit
rating agencies have recognized our commitment to executing our mid- to
long-term vision and maintaining strong financial health. We will continue to
focus on reinforcing a stable financial structure and making key investments in
our core businesses as we work towards becoming a global top-tier company.”