Moody's: E Mart unaffected

Moody's Investors Service said it expects E Mart Co Ltd.'s performance to remain sluggish over the next 12 to 18 months, which is credit negative.

However, this performance will not immediately impact its A3 rating and negative outlook because it has largely been factored into the current outlook, the agency said.

"Moody's expects that the negative like-for-like sales growth in E Mart's hypermarket business will persist until 2013, as a result of the tighter regulations on large retailers and the unfavorable economic situation," says Chris Park, a Moody's vice president and senior credit officer, in a news release.

"Given the expected shrinkage in profitability and sizeable capex, E Mart's financial profile will likely stay weak for its A3 rating over the next few years in the absence of substantial asset sales," he said.

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