KT&G Achieves Top Ratings from S&P and Moody's for Stability
KT&G Achieves Top Ratings from S&P and Moody's
- 'A-' by S&P, 'A3' by Moody's — Positive Factors Include Business Stability, Financial Stability, and Global Business Growth
On January 7, KT&G Corporation (KRX:033780), one of South Korea's leading tobacco manufacturers, proudly announced that it has received an esteemed 'A-' rating from S&P and an 'A3' rating from Moody's. These ratings reflect the company's strong financial standing and operational stability.
The 'A-' rating indicates a high level of credit quality, which is associated with a very low credit risk. This recognition positions KT&G among the top-rated companies in Korea, equivalent to renowned global tobacco firms. Moody's 'A3' rating also affirms KT&G's robust financial health and stability across the industry.
Both credit rating agencies noted several factors that contributed to KT&G's impressive ratings. The company's strong presence in Korea's tobacco market has been a critical element of its business stability. This stability is bolstered by stable profit generation and a low financial leverage ratio, which further underpin its solid ratings.
In addition to its core tobacco business, KT&G has shown exceptional performance in the Next Generation Products (NGP) sector. The diversification into other sectors like ginseng and non-tobacco products has also played a significant role in enhancing its overall business profile and stability.
Global credit rating agencies expressed anticipation for KT&G's ongoing expansion in global markets. They highlighted that KT&G's dedicated investments—including the establishment of new factories in strategic locations—will facilitate its international growth. This commitment to investing in future growth speaks volumes about KT&G’s strategic vision and long-term goals.
Earlier in June 2023, KT&G further strengthened its credit reputation by receiving 'AAA(Stable)' issuer credit ratings from several major Korean rating agencies. This additional recognition reflects the company's consistent performance and sound financial practices over time.
A spokesperson for KT&G commented on this achievement, noting that the acknowledgment from global credit rating agencies underscores KT&G's dedication to executing its mid-to-long-term vision alongside maintaining financial stability. Looking ahead, KT&G is committed to cultivating a robust financial structure that exhibits high credibility while investing in its core businesses to fuel its ambition of becoming a global leader in the industry.
These ratings not only reaffirm KT&G's position in the market but also build trust among stakeholders and investors as the company continues its strategic growth initiatives.
Frequently Asked Questions
What ratings did KT&G receive from S&P and Moody's?
KT&G received an 'A-' rating from S&P and an 'A3' rating from Moody's.
What factors contributed to KT&G's strong ratings?
KT&G's strong market position, stable profit generation, low financial leverage, and successful diversification into Next Generation Products helped secure these ratings.
How do these ratings compare to other companies?
KT&G's ratings are among the highest for Korean companies not categorized as public enterprises or financial institutions, placing it on par with leading global tobacco companies.
What future growth initiatives does KT&G have planned?
KT&G plans to expand its global operations by investing in new factories in places like Indonesia and Kazakhstan.
How does KT&G ensure its financial stability?
KT&G focuses on executing its mid-to-long-term vision, maintaining a solid financial structure, and investing strategically in its core businesses.
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