S&P Global Ratings assigned South Korean defense contractor and shipbuilder Hanwha Aerospace (KRX:012450) a long-term issuer credit rating of A- with a stable outlook, according to a Sunday release by the credit rating agency.
The stable outlook reflects S&P Global's expectation that Hanwha Aerospace's strong order backlog will drive steady revenue and EBITDA growth over the next two years.
In addition, the firm's strong ties with the South Korean government keep it in a strong position to likely receive extraordinary government support, the rating firm said.
Hanwha Aerospace's combined domestic and export land systems order backlog increased to 37.2 trillion won last year from 19.9 trillion won in 2022. The order backlog last year can generate about 4.6 years of revenue, the release said.
Shares of Hanwha Aerospace fell nearly 1% in Tuesday morning trade.