▲ JTBC Headquarters
JTBC has seen its credit rating downgraded after failing to repay 20.6 billion won in securitized loans on time.
In a statement released on June 12, JTBC acknowledged that "a default situation has occurred regarding some of its debt obligations."
NICE Investors Service downgraded the credit rating of JTBC’s unsecured corporate bonds from 'BBB/Negative' to 'CCC'.
The company's short-term credit ratings for commercial paper (CP) and electronic short-term bonds were also lowered from 'A3' to 'C'.
This rating adjustment follows JTBC's failure to repay the principal and interest on its securitized loans by the due date.
NICE Investors Service assessed that JTBC’s liquidity risk has increased significantly due to the default on 20.6 billion won in loans, which includes 5.6 billion won for 'Mir The Second' and 15 billion won for 'Cheil TBC The First'.
Korea Ratings also downgraded the company's rating from 'BBB (Negative)' to 'BB (Negative Review)' and its commercial paper and electronic short-term bond ratings from 'A3' to 'B (Negative Review)', stating that "the possibility of financial risk spreading from affiliates has increased, and uncertainty regarding liquidity has expanded."
Regarding this, JTBC explained, "External conditions have worsened, such as the significant contraction of the TV advertising market due to the rapid transformation of the media landscape, centered around digital and over-the-top (OTT) services."
The company added, "We will do our utmost by mobilizing all available internal and external measures to resolve this situation as quickly as possible with a sense of responsibility."
JTBC further stated that its broadcasting operations, including news reporting and major sports coverage, will continue to operate normally.
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.