KT&G Rated Strongly by S&P and Moody's

- 'A-'by S&P,'A3'by Moody's—Positive Factors Include Business Stability, Financial Stability, and Global Business Growth

SEOUL, South Korea,Jan. 8, 2025/PRNewswire/ -- On the 7th, KT&G Corporation ("KT&G") (KRX:033780),South Korea'sleading tobacco manufacturer, announced that it has been assigned A-(Stable) and A3 (Stable) ratings by two of the top three global credit rating agencies, S&P and Moody's, respectively.

The"A-"rating is a high credit quality rating denoting a good credit status and very low credit risk. KT&G's rating is a top rating among major Korean companies that are not public enterprises or financial institutions, and is equivalent to the ratings of leading global tobacco companies. The"A3"rating from Moody's is also a top rating among Korean companies, and recognizes KT&G's sound financial stability.

Global credit rating agencies determined that KT&G had high business stability, based on a dominant position in the Korea's tobacco market. Stable profit generation and low financial leverage ratio were also positive factors. Furthermore, KT&G's outstanding performance in the NGP (Next Generation Products) sector and diverse portfolio spanning across ginseng and other non-tobacco sectors were also highly rated.

Global credit rating agencies were particularly interested in KT&G's global business growth, and went on to state that KT&G's global business can expect further expansion based on KT&G's growth investment such as establishment of new factories inIndonesiaandKazakhstan.

InJune 2023, KT&G received"AAA(Stable)"issuer credit ratings from the three major Korean ratings agencies, Korea Ratings, Korea Investor Service, and NICE Investor services. 

KT&G's spokesperson said that"global credit rating agencies recognizes KT&G's faithful execution of mid-to-long term vision plans and financial stability"and that"going forward, KT&G will continue its effort to build a stable financial structure based on high credibility, and will invest in the core businesses in line with its'leap to a Global Top-tier'vision."

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SOURCE KT&G Corporation