SEOUL: JTBC Co Ltd, the broadcaster owned by South Korea’s media giant JoongAng Group, has defaulted on securitised loans and was downgraded to junk by a local ratings firm, triggering a series of rating cuts across the conglomerate.
JTBC defaulted on 20.6 billion won (US$13.6mil) of combined securitised loans due last Friday, according to Nice Investors Service. Nice lowered the broadcaster’s long-term credit rating to CCC and its short-term rating to C while also placing it on review for a further downgrade, it said in a report last Friday.
The missed payments have “significantly increased” JTBC’s liquidity risks, including refinancing risks tied to its other securitised borrowings and corporate bonds, Nice said.
The downgrades highlight mounting financial pressure across JoongAng, one of South Korea’s largest media groups.
The conglomerate is grappling with weakening operating performance at key businesses while carrying about 2.8 trillion won of debt in total, a burden that Nice said was excessive relative to its cash-generating capacity. — Bloomberg
