Rating and Investment Information, Inc. (R&I) announced on Thursday that it raised Samsung C&T’s outlook rating from stable to positive. The change reflects the increased profit stability from the Engineering & Construction business and the company’s overall rising earning capacity.
Stated in their rationale, R&I said that the Engineering and Construction Group’s competitive advantage stems from its ability to receive construction contracts from affiliated companies including Samsung Electronics, which is continuing aggressive investment. The upgraded rating also reflects the company’s successful risk management as it expands overseas operations.
Samsung C&T has maintained a policy of carefully selecting regions and fields as it expands, resulting in a reduction in the risk of incurring losses from projects and a stronger earning capacity for profit obtained through orders from affiliated companies. Other groups within Samsung C&T have also contributed to the positive outlook.
While the Trading & Investment Group centers mainly on materials such as chemicals and steel that have low profit margins, they also have limited risks. R&I also stated that risks associated with investments in natural resources and energy are unlikely to increase.
In addition to upgrading Samsung C&T’s outlook, R&I also affirmed the company’s A- issuer rating, reflecting an overall high creditworthiness supported by a few excellent factors, such as its strong position as an affiliate of Samsung Electronics Co., Ltd., which has the largest market capitalization in the country.
Samsung C&T has come a long way since its foundation in 1938, with KRW 49.05 trillion in assets and 9,422 employees across its global network. Supported by record-breaking performance this year, the company is well on its way to achieving its goals of continued growth and enhancing global relationships.