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Han Shin-pyeong "Overview of Hyundai HDC Development & Downgrading of HDC Credit Ratings"



Enter 2019.11.15 20:55

Korea's Credit Rating was chosen as the preferred bidder for the acquisition of Asiana Airlines HDC Development of Hyundai (294870)And holding company HDC (012630)Announced will be reviewed downgrade.

HDC Group was chosen as the negotiating partner of choice for Asiana Airlines on the 12th.

Han Shin-pyeong said, "Reducing liquidity and increasing loans because the acquisition of Asiana Airlines could have a negative impact on the HDC Hyundai Development credit rating."

"Synergy between construction and aviation is limited, Asiana Airlines (020560)Considering revenue volatility and the negative operating environment of the domestic aviation industry, operating volatility tends to increase from a consolidated perspective.

"HDC needs to review the credit rating if its financial burden increases significantly in accordance with the role of the holding company in the acquisition financing structure."

Asiana Airlines has upgraded its credit rating. Han Shin-pyeong said, "If the follow-up process is completed smoothly, the credit worthiness of Asiana Airlines can be improved by reducing financial leverage by increasing capital from new major shareholders and increasing access to the capital market by stabilizing the government."


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