S&P Rates Hanwha Aerospace's Proposed US Dollar Notes A-
S&P Global Ratings on Wednesday placed an A- long-term issue rating on Hanwha Aerospace's (KRX:012450) proposed US dollar senior unsecured notes. The notes' rating is equivalent to the Korean company's issuer credit rating, as the parent's sizable earnings amply mitigate possible subordination risks from a high priority debt ratio, S&P said. The company's priority debt ratio hit 57% at the end of March, above S&P's 50% notching threshold. S&P believes the company will gain from the secular growth of global defense spending due to its strong position in land defense systems. However, the company faces risks from a cyclical shipbuilding industry, its heightened investment plans, and execution risks from growth abroad. Shares of the company rose more than 6% in recent trade.
S&P Global Ratings on Wednesday placed an A- long-term issue rating on Hanwha Aerospace's (KRX:012450) proposed US dollar senior unsecured notes.
The notes' rating is equivalent to the Korean company's issuer credit rating, as the parent's sizable earnings amply mitigate possible subordination risks from a high priority debt ratio, S&P said.
The company's priority debt ratio hit 57% at the end of March, above S&P's 50% notching threshold.
S&P believes the company will gain from the secular growth of global defense spending due to its strong position in land defense systems.
However, the company faces risks from a cyclical shipbuilding industry, its heightened investment plans, and execution risks from growth abroad.
Shares of the company rose more than 6% in recent trade.