S&P upgrades KCC

Standard & Poor's said it raised KCC Corp.'s long-term corporate credit rating and senior unsecured debt to BBB from BBB-.

The outlook is stable.

The agency said the upgrade reflects KCC's improved financial risk profile based on its enhanced free cash flows and capital structure and the company's increasingly conservative financial policy and projection for capital expenditures, which are expected to be funded by internally generated cash flows and limited additional debt.

The ratings continue to reflect KCC's diversified product portfolio, leading domestic market position, healthy balance sheet and the ability to generate stable profits and strong cash flows from its core paint, glass and building material businesses, S&P said.

At the same time, the ratings take into account KCC's exposure to the cyclical domestic construction industry, weak corporate governance standards and lack of geographic diversification, the agency added.

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