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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] NICE Investors Service said on the 28th that it has maintained the corporate credit rating of Hansae Yes24 Holdings at ‘BBB’ while revising the outlook to ‘Negative’ from ‘Stable,’ citing weakening cash flow and increased financial burden from subsidiary investments and support.
The rating agency pointed to key factors including expanded funding needs from equity acquisitions and the purchase of Hansae Mobility, increased borrowings amid declining dividend income, and growing guarantees for underperforming affiliates.
Baek Ju-young, a senior analyst at NICE, said the company’s financial burden has significantly increased following a series of investments, including stakes in Hansae MK (KRW 26 billion) in 2020, Hansae Co. (KRW 60 billion) in 2023, and approximately KRW 165 billion for the acquisition of Hansae Mobility (formerly Erae AMS) in the second half of 2024, including a KRW 30 billion capital increase.
“In 2025, the company continued to provide around KRW 20 billion in financial support to affiliates, while dividend income declined year-on-year, leading to increased reliance on borrowings,” Baek said.
As a result, the holding company’s financial indicators have weakened. As of end-2025, its standalone debt ratio stood at 83.5%, net debt dependence at 43.5%, and double leverage at 168.2%, all reflecting a rise in financial burden compared to the previous year. Total borrowings reached KRW 336.1 billion, including KRW 80 billion borrowed from its key subsidiary Hansae Co.
NICE also highlighted the company’s role as a financial supporter within the group, providing payment guarantees of approximately KRW 259.4 billion to affiliates such as Hansae MK and Hansae Mobility. Given the increasing debt burden of these affiliates and their weak performance, the agency said it factored in the structural subordination risks of the holding company.
Looking ahead, NICE plans to closely monitor whether the company can gradually ease its debt burden based on the cash-generating capacity of its core subsidiary, Hansae Co., which is expected to undertake large-scale expansion investments in Guatemala in 2026.
Baek added that future rating decisions will take into account the company’s ability to cover recurring expenses, trends in financial support for affiliates, and changes in profitability and leverage stemming from expansion investments.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
