DL : Construction Receives Best Rating of AAA in HUG Credit Rating Evaluation for Five Consecutive Years

DL Construction Receives Best Rating of AAA in HUG Credit Rating Evaluation for Five Consecutive Years

2022. 08. 30

DL Construction's CI

DL Construction announced that it obtained an AAA rating, the highest rating, in the recent HUG credit rating regular evaluation. DL Construction has maintained the highest rating since 2018.

The evaluation items are divided into financial model and non-financial model: For the financial model, evaluation is conducted using the company's financial soundness including debt repayment capability, productivity, activity, and profitability. The non-financial model is assessed by considering the qualitative factors affecting corporate management activities: economic outlook, construction capability, business competitiveness, business prospects, and major credit risk.

The rating is used for HUG's determination of the following: guarantee fee (construction guarantee and subcontract payment guarantee), loan interest rate, guarantee ceiling, and arbitrary decision standards of guarantee approval.

Aside from HUG, DL Construction obtained a corporate credit rating (bond without guarantee) of A- (stable) in April from other credit rating companies such as Korea Ratings and KIS Ratings. Named an A class construction company after being upgraded to A- last year, DL Construction has also maintained its A- rating this year for the following reasons: good business stability based on many orders on hand and construction experience; excellent profitability and financial structure based on the housing business with high profitability; and outstanding financial soundness retention outlook with solid cash creation ability.

"We will endeavor to return the high external reliability we enjoy," a source at DL Construction vowed.