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Photo: Contentree Central |
[Alpha Biz= Paul Lee] This week in the credit market, Contentree Central’s credit rating was downgraded to ‘BBB-’ with a stable outlook, just above speculative-grade ‘BB+’, while SK Geocentric was assigned a ‘Negative’ outlook, signaling a heightened risk of future downgrade. Conversely, Hanjin, Korea Aerospace Industries, and POSCO International saw their credit outlooks upgraded.
Korea Ratings downgraded Contentree Central’s unsecured bonds from ‘BBB (Negative)’ to ‘BBB- (Stable)’, bringing the company close to speculative-grade territory. Its commercial paper (CP) and short-term bonds were lowered from ‘A3’ to ‘A3-’, and the ratings for its major subsidiary, Megabox Central, were also downgraded from ‘A3’ to ‘A3-’.
The downgrade reflects Megabox Central’s weakened credit profile, which suffered large operating losses during the COVID-19 pandemic. Although the company has made ongoing efforts to improve its revenue structure, the expansion of OTT platforms and declining movie theater attendance have delayed profitability recovery.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
