Hansinpyeong to Shinsegae's credit rating 'AA' downward ... Unfavorable business environment, revenue decline

[Korea goyounghun financial newspaper News] South Korea and downward credit rating is the credit rating of the New World to the AA.

Hansinpyeong announced on the 27th that the downward unsecured corporate bond credit rating of the New World through regular evaluation in the last 24 days in AA (stable) from existing AA + (negative).

Prior nice rating and Korea Ratings is also a downward AA (stable) rating from the New World, each AA + (negative) bar. Throwing the same opinion at this time to the New World hansinpyeong credit rating was the same for all three companies.

Hansinpyeong is given to the New World Department Store Category awareness domestic market position and excellent brand of water level, such as cash flow and a solid group of credit rating outlook itself was described as stable. He spun the hypermarket sector for the purpose of strengthening of May in 2011 by business expertise, evaluation work is currently operating a total of 13 department stores. Related parties, including the current President Lee Myeonghui (18.2%) has 28.1% of the shares.

Hansinpyeong side pointed out the adverse operating environment and that the income changchulryeok falling to downgrade factors.

Hansinpyeong INDUSTRY ASSESSMENTS headquarters bakchunseok implementation "reflected the unfavorable operating conditions and decrease the financial indicators such as overall credit quality that is difficult to recover in the medium term," it said "The profitability and financial burden enlarged due to the investment of the consumer slump major factor" he said.

Despite the overall top-line growth, new store openings in 2016 in accordance with such effect, an offline store same-store sales growth was a mere 2.5%. This is because the department Category hansinpyeong opinion is that slow growth trend of the first half under such weak consumption is increasing and diversified distribution channels, purchasing channels for consumers amid prolonged.

Park chief of "The revenue growth is limited, among profitability indicators have continued to decline as increased costs due to new store openings and the main store expansion" and "a time being the situation is not easy to improve the business environment, new stores bear the initial costs When considering the possibility of significantly improving profitability in the short term were judged to be limited. "

Due to the downtown duty-free operators can also increase as China, Korea Tourism restrictive measures, such as operating conditions deteriorated even higher likelihood of improved profitability delay.

He "had concentrated two new stores and duty-free shops open, same-store expansion, including increased investment, thus widened its own borrowing scale" and "business early or development phases of new stores and duty free shops related separate legal family, considering the borrowing scale financial burden, combined with the decline in the profitability trend was also aggravated the situation deteriorated financial stability, "he said diagnosis.

The hansinpyeong plans to monitor whether existing external growth and new stores, duty-free investment performance and self, family income changchulryeok improvement, investment regulation, assets such as financial management of leverage as a whole.



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