The average number of companies that suffered credit rating downgrades hit a three-year high this year, as they have been struggling to cope with the risks stemming from the US-China trade war and global economic slowdown, latest data showed Monday.
 

According to separate evaluations by three major credit rating agencies here, the average number of firms that were downgraded so far this year increased to 55 firms, 15 more than last year. The corresponding figure stood at 37 in 2018 and 45 in 2017.

This year’s figure marked the highest since 2016 when the number stood at 91.

Compared with the increase in the number of firms that saw their credit ratings fall this year, 35 firms saw an upgrade, which is nearly 10 less than last year.

Hyundai Motor was among key exporters that saw its rating decline by a notch. All three ratings firms -- NICE Investors Service, Korea Ratings Corp., and Korea Investors Service -- downgraded its rating to AA+ from the previous AAA.

Its sister company Kia Motors also saw its pulled down from AA+ to AA by the agencies.

“The downgrade came amid the worsened global business conditions coupled with sluggish domestic demand and narrowed profit margins,” NICE Investors Service said.

By Jung Min-kyung (mkjung@heraldcorp.com)