[Alpha Biz= Paul Lee] On June 27, Korea Investors Service (KIS) announced a downgrade of Pulmuone Foods Co., Ltd.’s unsecured bond credit rating from A- (Negative) to BBB+ (Stable), citing sustained weakness in both domestic and overseas operations. The agency also lowered the company’s hybrid bond rating from BBB+ (Negative) to BBB (Stable).



In its report, KIS noted:

“Pulmuone’s profitability has deteriorated due to concurrent sluggish performance in its domestic and international businesses. Although the company’s financial metrics improved somewhat following the issuance of KRW 195.5 billion in hybrid securities between 2021 and 2024, these instruments retain debt-like characteristics due to embedded early redemption options. Even with controlled capital expenditures, a fundamental recovery in financial structure is expected to take time.”



Pulmuone Foods was established in 2008 through a spin-off of the manufacturing division of Pulmuone. The company specializes in soy-based foods, including tofu, soy milk, and noodles, and has positioned itself as a leading player in Korea’s health-oriented food segment.



KIS’s downgrade reflects concerns over the company’s operating margin pressure, limited short-term growth prospects, and the residual leverage risks tied to its hybrid securities. The revised outlook to “Stable” suggests a reduced likelihood of further downgrades in the near term, assuming current financial and operational conditions are maintained.

 

 

 

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