September 11, 2019 11:54
Credit ratings firm Moody's has warned of possible downgrades of Korean businesses.
Moody's in a report Tuesday said 19 out of 27 non-financial, state-run Korean companies could see their credit ratings lowered in the future due to deteriorating earnings in the first half of this year.
"The ongoing U.S.-China trade dispute will continue to negatively affect the earnings of many export-oriented companies," said Yoo Wan-hee at Moody's. "This will be particularly evident in the technology and chemical sectors, where firms typically export large amounts of commodities and components to China."
Moody's recently slashed the outlook of SK Hynix, E-Mart, SK Innovation, SK Global Chemical and LG Chem to "negative."
In July, S&P also warned Korean companies of downgrades in their credit ratings. Global ratings firms have an increasingly negative outlook for Korean businesses' due to the global economic slowdown compounded by a trade spat between Korea and Japan.
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