JTBC Credit Rating Downgraded to CCC Following 20.6 Billion Won Default

JTBC has had its credit rating downgraded after failing to repay 20.6 billion won in securitized borrowings on time.

In a statement released on June 12, JTBC acknowledged that "a situation of non-payment has occurred regarding some debt obligations."

NICE Investors Service downgraded the credit rating of JTBC's unsecured 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 borrowings by the due date.

NICE Investors Service assessed that JTBC's liquidity risk has increased significantly due to the default on a total of 20.6 billion won in borrowings, including 5.6 billion won for 'Miru 2nd' and 15 billion won for 'Cheil TVC 2nd'.

Korea Ratings also downgraded the company's rating from 'BBB (Negative)' to 'BB (Negative Watch)' and its commercial paper and electronic short-term bond ratings from 'A3' to 'B (Negative Watch)', stating that "the potential for financial risk contagion from affiliates has increased, and uncertainties regarding liquidity have expanded."

In response, JTBC explained, "External conditions have worsened as the media landscape shifts rapidly toward digital and over-the-top (OTT) services, leading to a significant contraction in the TV advertising market."

The company added, "We will do our utmost to resolve this situation as quickly as possible with a sense of responsibility by mobilizing all available internal and external measures."

JTBC further stated that its broadcasting operations, including news reporting and major sports coverage, will continue to function normally.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.