DSME faces further credit rating downgrade

[THE INVESTOR] Daewoo Shipbuilding & Marine Engineering's credit rating could be lowered further, the Korea Investors Service said on Aug. 22.

The ailing shipbuilder is currently rated BB.

The current rating was given in June, when it was lowered from BB+.

Korea Investors Service analysts said the company’s losses grew in the second quarter, and the deteriorating credibility of DSME’s accounting is adding to the downward pressure on its credit rating.

DSME posted an operating loss of 356.9 billion won (US$317 million) for the second quarter of the year.

By Choi He-suk (cheesuk@heraldcorp.com)