Kim Hyun-bin began his journalism career at Arirang TV from 2012 to 2017, specializing in defense, foreign affairs and the economy. In 2018, he joined The Korea Times, covering society and business, and is currently responsible for embassy affairs.
KT&G receives highest credit rating of AAA
By Kim Hyun-bin
Tobacco and ginseng products maker KT&G received the highest credit rating of AAA from three major domestic rating agencies. That rating excludes financial and telecommunications companies.
KT&G headquarters in Daejeon / Courtesy of KT&G
By Kim Hyun-bin
Korea Ratings, Korea Credit Rating and NICE Credit Rating announced the AAA rating, Sunday. Among private non-financial and non-telecommunications companies in Korea, KT&G is the sole entity to receive an AAA credit rating.
Credit rating agencies recognized KT&G's exceptional financial stability, which is attributed to its strong market position in key sectors. The company's extensive track record, robust brand recognition leading to a dominant share of the domestic market and positive evaluation of its global tobacco and e-cigarette business were crucial factors contributing to the rating.
Furthermore, the agencies anticipate that KT&G will maintain strong financial stability by effectively addressing future capital requirements through consistent cash flow generation. The company's focus on shareholder returns, stock repurchases, as well as domestic and international production facility expansion, also played a role in the assessment.
"Amidst a challenging business environment marked by increased uncertainties, such as rising interest rates both domestically and globally, obtaining the highest 'AAA' rating from the three credit rating agencies acknowledges our company's stability and profitability. We remain committed to maintaining a stable financial structure built upon our outstanding creditworthiness," a KT&G official said.
KT&G logo / Courtesy of KT&G