NICE Investors Service Upgrades Hanwha Aerospace Credit Rating to 'AA' Following Korea Investors Service

"Business Performance Expansion and Capital Injection from Rights Offerings"

(Seoul=Yonhap Infomax) Hak Seong Kim – NICE Investors Service announced on the 20th that it has upgraded the credit rating of Hanwha Aerospace Co. from 'AA-' to 'AA'.

The credit rating outlook was revised from 'Positive' to 'Stable'.

NICE Investors Service cited Hanwha Aerospace's robust performance, driven by the expansion of its defense business and improvements in the aerospace and shipbuilding sectors.

The agency also positively assessed the company's successful capital raising, noting that Hanwha Aerospace secured over 4 trillion won ($3.08 billion) in equity capital through a third-party rights offering of 1.3 trillion won ($1.00 billion) in April and a shareholder rights offering of 2.9 trillion won ($2.23 billion) in July.

NICE Investors Service stated, "While large-scale investments such as overseas shipbuilding equity stakes, overseas defense joint ventures, and the establishment of local production capacity abroad are expected over the next several years, the company should be able to respond smoothly based on its enhanced cash generation and the proceeds from the sizable rights offerings."

Regarding recent business trends, the agency noted that ongoing geopolitical risks, including the Russia-Ukraine war and Middle East conflicts, are likely to drive increased demand for weapons produced by Hanwha Aerospace.

For the first three quarters of this year, Hanwha Aerospace reported consolidated cumulative sales of 18.3 trillion won ($14.09 billion) and EBITDA (earnings before interest, taxes, depreciation, and amortization) of 2.9 trillion won ($2.23 billion).

As of the end of September, the company's debt ratio stood at 221.8%, with a borrowing dependency ratio of 13.0%.

Korea Ratings currently assigns Hanwha Aerospace a credit rating of 'AA- (Positive)'. Korea Investors Service awarded an 'AA (Stable)' rating last month.

hskim@yna.co.kr

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