Ssangyong E&C said on the 22nd that this year its Korea Housing & Urban Guarantee Corporation (HUG) credit rating rose two notches from A+ to AAA.
HUG comprehensively evaluates a contractor's financial condition and management capability to assign a credit rating. This rating is a key indicator that serves as the standard for various guarantee operations, including project financing (PF) guarantees, sales guarantees, and defect repair guarantees. As of last year, only 13 out of 2,740 contractors subject to evaluation earned an AAA rating.
With the credit rating upgrade, Ssangyong E&C's guarantee limit has expanded. The total guarantee limit for this year is about 14.95 trillion won, up about 5 trillion won from the previous year. A reduction in guarantee fee rates is also expected to cut financing costs.
A Ssangyong E&C official said, "With support from Global Sae-A, Ssangyong E&C has posted a profit for three consecutive years and its liability repayment capacity has improved," adding, "capacity to advance projects in various areas, including dwellings development projects, maintenance projects, and remodeling projects, is expected to strengthen further."