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(Source: ContentreeJoongAng) |
[Alpha Biz= Paul Lee] Korea Ratings on the 29th announced that it has downgraded the credit rating of ContentreeJoongAng corp. (formerly BBB0) to BBB-, placing the company just one notch above speculative grade. The rating outlook was also revised from “negative” to “stable.”
The agency said it also lowered the company’s short-term credit rating for commercial paper from A3 to A3-.
Analyst Kim Hyun‑jun of Korea Ratings explained that the downgrade reflects the weakening credit profile of the company’s primary subsidiary, Megabox Central, which has continued to struggle with profitability due to sustained operating losses following the COVID‑19 pandemic. The spread of over‑the‑top (OTT) platforms has dampened theatrical demand, delaying a recovery in operating profitability.
Kim also noted that ongoing net losses have deteriorated the company’s financial structure and increased its financing costs.
Korea Ratings highlighted that ContentreeJoongAng’s planned merger activities, such as the memorandum of understanding signed in May among Lotte Shopping, Megabox Central, and Lotte Cultureworks, warrant continued monitoring as they unfold.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
