Exterior view of the Hanwha Building
Hanwha Aerospace (012450.KS) said Monday it has received an ‘A-‘ credit rating from global ratings agency Standard & Poor’s (S&P). It is the first time a South Korean defense and aerospace company has obtained a global credit rating.
S&P’s A- rating typically signifies not just that an investment poses no problems but that the entity is “a safe and reliable investment target.” Among global defense firms that have received an A- rating are Lockheed Martin and BAE Systems. Along with the A- rating, S&P assessed Hanwha Aerospace’s credit outlook as “stable.”
S&P evaluated Hanwha Aerospace as South Korea’s largest defense company and forecast that key weapons systems such as the K9 self-propelled howitzer and the Chunmoo multiple launch guided missile system would benefit as the global defense market grows. It also cited weapons system exports expanding centered on Europe and the Middle East, rapid supply capability, and compatibility with North Atlantic Treaty Organization (NATO) standards as key competitive strengths.
In addition, S&P said Hanwha Aerospace plays an important role in South Korea’s security and projected that its record order backlog—approximately 37 trillion won as of the end of 2025—would lead to stable revenue growth and improved profitability going forward.
“Obtaining an excellent global credit rating is a key factor in securing trust in negotiations with overseas governments and local investors,” said Kim Cheol-hong, Chief Financial Officer (CFO) of Hanwha Aerospace. “Based on this S&P credit rating, we will strengthen our global competitiveness spanning defense, space, and aerospace.”