According to the industry on the 22nd, Korea Investors Service upgraded Paradise’s corporate bond rating at its eighth review to A+ (stable) from A (positive). NICE Investors Service also reaffirmed the A+ (stable) rating it assigned in October last year, again citing the company’s solid financial health.
◆ Casino demand, hotel deals seen supporting stronger results
The upgrade was attributed to improved performance from rising casino customer demand, expectations for revenue growth through hotel acquisitions and new hotel construction, and expanded investment supported by financial stability.
Paradise posted 1.1499 trillion won in revenue last year, up 7.3% from a year earlier. The company’s growth was driven by higher drop amounts from Japanese VIP and mass-market customers, the evaluators said. They also pointed to the acquisition of the Grand Hyatt Incheon West Tower, a 501-room property, as a key investment expected to help sustain revenue growth.
◆ Debt ratio at 84.4% despite investment push
Despite large-scale investment, Paradise has maintained strong financial indicators. Borrowing is expected to rise due to new projects, including development of a flagship hotel in Jangchung-dong, Seoul, but annual operating cash flow of about 200 billion won is supporting the funding needs.
As of 2025, net debt fell 61 billion won from the end of the previous year to 377.3 billion won. The debt ratio stood at 84.4%, and the borrowing dependency ratio was 29.5%, levels the agencies described as reflecting a very stable financial structure.
NICE Investors Service cited continued performance centered on the integrated resort Paradise City and stronger customer-attraction capacity from new hotel acquisitions. It said capital expenditures and working-capital burdens were manageable relative to cash generation.
A Paradise official said the market had given the company a high assessment of its business performance and future value. The official said Paradise would use the higher credit standing to strengthen its financing competitiveness and contribute to the development of South Korea’s tourism industry.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.