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[Apha Biz=(Chicago) Reporter Paul Lee] The Korea Credit Rating lowered GS Engineering & Construction's credit rating outlook.
On the 29th, the Korea Credit Rating lowered the rating outlook for GS Engineering & Construction's non-guaranteed bonds from 'stable' to 'negative'.
The Ministry of Land, Infrastructure and Transport said on the 27th that it plans to suspend GS Engineering & Construction's underground parking lot for a total of 10 months, citing poor construction. If the disposal is confirmed through follow-up procedures in the future, new orders due to restrictions on domestic private construction orders and bidding for public projects will be disrupted during the period.
GS Engineering & Construction recognized an operating loss of 413.8 billion won on a consolidated basis, reflecting the expected cost of 552.4 billion won in the demolition, reconstruction and compensation process of the accident site in the second quarter of last year. It's a massive loss similar to the annual operating profit. The total amount of borrowing is also increasing to 5.8892 trillion won as of the end of June due to the promotion of new businesses and the increase in working capital.
The Korea Investors Service cited the possible increase in GS Engineering & Construction's credit rating as a △ drop in business performance due to sluggish housing business and disruptions in construction of major projects △ consolidated operating profit ratio to less than 4% △ consolidated debt ratio to more than 250%.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
