Hyosung Chemical receives negative credit rating outlook

South Korean credit rating agency NICE Investors Service Co. (NICE) downgraded Hyosung Chemical's credit rating outlook from stable to negative on Wednesday.

The company's long-term (BBB+) and short-term (A3+) credit ratings remain unchanged.

NICE cited Hyosung Chemical's deteriorating financial stability due to accumulated operating losses in 2022 and 2023, which continued into the first quarter of this year.

The company's high debt burden of 2.5 trillion won ($1.95 billion) compared to its equity capital of 92.4 billion won further weakens its position.

The outlook for Hyosung Chemical's main product, polypropylene (PP), is unfavorable due to increased competition from Chinese manufacturers.

Write to Hyung-Kyu Kim at khk@hankyung.com