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Hanwha Solutions (Photo: Hanwha Solutions) |
[Alpha Biz= Reporter Kim Sangjin] This week, Hanwha Solutions' (009830) credit outlook has been downgraded from "stable" to "negative" by Korea Ratings (Korea Ratings, KIS), raising concerns about the company's AA- rating status. Meanwhile, Hana F&I's (A) credit rating was upgraded to A+ by both Korea Corporate Ratings and Korea Ratings.
Korea Ratings cited weak performance in the company's core businesses and deteriorating financial stability due to increased investments as the reasons for the negative outlook. Despite efforts to improve, the company has continued to face operating losses, particularly in the chemical and renewable energy sectors.
Through the third quarter of this year, the chemical and renewable energy divisions have posted weak earnings, with the chemical division experiencing a sales decline and turning to a loss. The renewable energy segment has also struggled, with the Chinese solar module tariffs and trade barriers continuing to cause oversupply issues, resulting in sustained losses in both the first and third quarters.
In addition, Hanwha Solutions' weakened cash generation capacity and increasing investment burdens—such as expanding solar facilities in the U.S.—have resulted in a significant rise in net borrowings. As of the third quarter of this year, the company’s non-financial debt rose by 3.2 trillion KRW to 10.7 trillion KRW, worsening its coverage and leverage ratios.
Korea Ratings anticipates that even if the U.S. solar industry recovers, Hanwha Solutions' performance rebound will be limited, with continued struggles in the chemical sector likely to hinder recovery. Additionally, if the Trump administration’s second term policies lead to a setback in solar-related policies, the company's renewable energy division will likely face further constraints.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
