Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers E > Headlines for E Mart Inc. > News item |
S&P downgrades E-Mart
Standard & Poor’s said it lowered its long-term corporate credit rating on E-Mart Inc. to BBB from BBB+. The outlook is stable.
“The downgrade reflects our expectation that E-Mart’s aggressive capital expenditures combined with weak domestic consumption will erode measures of the company’s creditworthiness over the next one to two years,” said S&P credit analyst JunHong Park in a news release.
“During this period, we expect the company to maintain heavy capital spending to grow new businesses such as multipurpose shopping malls, leading to negative free operating cash flow and a substantial increase in debt. We estimate the company’s debt to EBITDA after our adjustments will remain weak at about 3.8x-4.2x over the next 12 months, compared with 3.2x in 2013.”
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.