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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] S&P Global Ratings said on Wednesday that it has placed Hanwha TotalEnergies’ BBB- credit rating on CreditWatch with negative implications, citing mounting structural challenges in the company’s business.
S&P said Hanwha TotalEnergies’ portfolio, which is heavily focused on commodity petrochemical products, is facing persistent structural headwinds. The agency added that it does not expect a meaningful recovery in industry conditions before 2027.
The rating agency noted that global oversupply and an uncertain trade environment continue to weigh on the sector, while competition is intensifying from vertically integrated producers in China and the Middle East that benefit from large-scale facilities and higher operational efficiency. These factors, S&P said, are increasing overall business risk and are likely to constrain the company’s profitability recovery.
S&P also warned that the prolonged downturn in the petrochemical industry could delay any rebound in Hanwha TotalEnergies’ earnings. The agency said it may downgrade the rating within the next 12 months if the company’s operating performance fails to improve materially or if its financial position does not strengthen.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
