23일 국제 신용평가기관인 무디스(Moody's)가 롯데쇼핑의 신용등급을 'A3'로 부여하고 등급 전망을 '안정적(Stable)'으로 제시했다.
무디스의 크리스 박(Chris Park) 선임연구원은 "이번 A3 등급 부여에는 롯데쇼핑이 견조한 실적을 바탕으로 백화점 쇼핑 분야에서 선도적인 위치를 차지하고 있다는 점과 높은 진입장벽을 보유하고 있는 점 등이 반영된 것"이라고 밝혔다.
그는 또 "탁월한 재무 구조와 견조한 실적, 대형 수표마켓과 같은 소매업 부문의 안정적인 운영으로 매출에 대한 기여도가 증가하고 있다는 점도 반영했다"고 밝혔다.
아래는 무디스가 발표한 등급 발표 성명 원문.
Moody's assigns Lotte Shopping first-time A3 rating; outlook stable
Hong Kong, February 23, 2009 -- Moody's Investors Service has assigned an A3 issuer rating to Lotte Shopping Co Ltd ("Lotte Shopping"). This is the first time that Moody's has assigned a rating to the company. The rating outlook is stable.
"The A3 rating mainly reflects Lotte Shopping's significant strengths in its key earnings driver, namely the Korean department store segment, as demonstrated by its clear leadership position, proven execution and merchandising ability, and high barriers to entry," says Chris Park, a Moody's Vice President/Senior Analyst, adding, "The rating is also underpinned by its excellent financial profile, robust earnings and increasing contribution from more stable retail business formats such as the hypermarket and supermarket segments."
"The company has exhibited excellent financial leverage and cash flow measures following the IPO in 2006, as demonstrated by (excluding Lotte Card-related) debt/EBITDA of 1.6-1.7x and retained cash flow ("RCF")/net debt of about 70% in 2008. While Moody's expects the company's financial metrics to weaken to some extent over the next few years due to ambitious capex programs and the economic downturn, such ratios are likely to remain consistent with its A3 rating," adds Park.
The rating is, however, balanced by Lotte Shopping's susceptibility to the economic cycles and the expected downturn in consumer spending, with, in Moody's view, the material risk of a drop in its department store's like-for-like sales growth in the near term.
The rating also recognizes the company's moderate competitive position and relatively weak profitability in the Korean hypermarket industry, where competition and new store openings remains intense despite the increasing level of saturation. In addition, Moody's is cautious about its degree of execution/event risk and weakening financial flexibility due to expansion overseas and appetite for acquisitions.
Lotte Shopping's strong credit profile is to some extent constrained by business/financial risks relating to its credit card operations, which are more susceptible to economic cycles than the retail business. Moody's also notes that Lotte Shopping has modest contingent liabilities to render support to its 20.6%-owned, Lotte Capital, which has a weaker operating and financial profile.
The stable outlook reflects Moody's expectations that Lotte Shopping will maintain its solid position in Korea's retail industry and its credit metrics will remain commensurate with the A3 rating level amid a slowing consumer spending environment.
A rating upgrade will be unlikely in the near term given the uncertain economic environment, Lotte Shopping's expansion plan and its contingent liabilities towards its financial subsidiaries. Upward rating pressure could emerge over the medium term if the company maintains a strong financial profile and solid market position while containing risks relating to its financial arms to a manageable degree. This would be characterized by (excluding Lotte Card-related) debt/EBITDA below 1.5x, retained cash flow ("RCF")/net debt above 50% and free cash flow ("FCF")/net debt above 10% on a sustained basis.
무디스의 크리스 박(Chris Park) 선임연구원은 "이번 A3 등급 부여에는 롯데쇼핑이 견조한 실적을 바탕으로 백화점 쇼핑 분야에서 선도적인 위치를 차지하고 있다는 점과 높은 진입장벽을 보유하고 있는 점 등이 반영된 것"이라고 밝혔다.
그는 또 "탁월한 재무 구조와 견조한 실적, 대형 수표마켓과 같은 소매업 부문의 안정적인 운영으로 매출에 대한 기여도가 증가하고 있다는 점도 반영했다"고 밝혔다.
아래는 무디스가 발표한 등급 발표 성명 원문.
Moody's assigns Lotte Shopping first-time A3 rating; outlook stable
Hong Kong, February 23, 2009 -- Moody's Investors Service has assigned an A3 issuer rating to Lotte Shopping Co Ltd ("Lotte Shopping"). This is the first time that Moody's has assigned a rating to the company. The rating outlook is stable.
"The A3 rating mainly reflects Lotte Shopping's significant strengths in its key earnings driver, namely the Korean department store segment, as demonstrated by its clear leadership position, proven execution and merchandising ability, and high barriers to entry," says Chris Park, a Moody's Vice President/Senior Analyst, adding, "The rating is also underpinned by its excellent financial profile, robust earnings and increasing contribution from more stable retail business formats such as the hypermarket and supermarket segments."
"The company has exhibited excellent financial leverage and cash flow measures following the IPO in 2006, as demonstrated by (excluding Lotte Card-related) debt/EBITDA of 1.6-1.7x and retained cash flow ("RCF")/net debt of about 70% in 2008. While Moody's expects the company's financial metrics to weaken to some extent over the next few years due to ambitious capex programs and the economic downturn, such ratios are likely to remain consistent with its A3 rating," adds Park.
The rating is, however, balanced by Lotte Shopping's susceptibility to the economic cycles and the expected downturn in consumer spending, with, in Moody's view, the material risk of a drop in its department store's like-for-like sales growth in the near term.
The rating also recognizes the company's moderate competitive position and relatively weak profitability in the Korean hypermarket industry, where competition and new store openings remains intense despite the increasing level of saturation. In addition, Moody's is cautious about its degree of execution/event risk and weakening financial flexibility due to expansion overseas and appetite for acquisitions.
Lotte Shopping's strong credit profile is to some extent constrained by business/financial risks relating to its credit card operations, which are more susceptible to economic cycles than the retail business. Moody's also notes that Lotte Shopping has modest contingent liabilities to render support to its 20.6%-owned, Lotte Capital, which has a weaker operating and financial profile.
The stable outlook reflects Moody's expectations that Lotte Shopping will maintain its solid position in Korea's retail industry and its credit metrics will remain commensurate with the A3 rating level amid a slowing consumer spending environment.
A rating upgrade will be unlikely in the near term given the uncertain economic environment, Lotte Shopping's expansion plan and its contingent liabilities towards its financial subsidiaries. Upward rating pressure could emerge over the medium term if the company maintains a strong financial profile and solid market position while containing risks relating to its financial arms to a manageable degree. This would be characterized by (excluding Lotte Card-related) debt/EBITDA below 1.5x, retained cash flow ("RCF")/net debt above 50% and free cash flow ("FCF")/net debt above 10% on a sustained basis.
