Hanwha Aerospace Becomes First Korean Defense Firm to Achieve 'A-' Credit Rating from S&P

Hanwha Aerospace has become the first defense and aerospace company in South Korea to receive an investment-grade credit rating of 'A-' from global credit rating agency Standard & Poor's (S&P). This achievement is expected to enhance the company's competitiveness in securing overseas contracts.
On June 22, Hanwha Aerospace announced that it has been assigned a long-term credit rating of 'A-' with a stable outlook by S&P. This marks the first time a South Korean defense and aerospace firm has attained a global credit rating.
The 'A-' rating from S&P indicates that the company is considered a safe and reliable investment, surpassing the level of merely being acceptable for investment. Among global defense companies, Lockheed Martin and BAE Systems hold the same rating.
S&P has recognized Hanwha Aerospace as the largest defense company in South Korea, predicting that its key weapon systems, including the K9 self-propelled howitzer and the Chunmoo multiple rocket launcher, will benefit from growth in the global defense market.
The agency highlighted the company's strengths in expanding arms exports, particularly in Europe and the Middle East, as well as its rapid supply capabilities and compatibility with NATO standards.
S&P noted that Hanwha Aerospace plays a crucial role in South Korea's security and anticipates stable revenue growth and improved profitability, supported by a backlog of approximately 37 trillion won as of the end of last year.
Industry experts believe that this global credit rating will positively influence future contract negotiations with foreign governments, local investments, and financing processes.
Kim Cheol-hong, Chief Financial Officer of Hanwha Aerospace, stated, "Achieving an excellent global credit rating is a key factor in securing trust during negotiations with foreign governments and local investors. We will continue to strengthen our global competitiveness across defense, aerospace, and aviation sectors."
As of the first quarter of this year, Hanwha Aerospace reported a cumulative backlog of 39.7 trillion won in its ground defense sector. Following a contract for the additional supply of 72 Chunmoo systems to Poland in 2024, the company has also secured a contract for the supply of K9 self-propelled howitzers to Romania, contributing to its growth trajectory.

* This article has been translated by AI.