[Edaily Marketin LEE GEON-EOM Reporter] The likelihood of a credit rating upgrade for DOOSAN(000150), the holding company of the DOOSAN Group, has increased, driven by the rapid growth of its core businesses following the boom in the artificial intelligence (AI) market and strong earnings from its key subsidiaries.

Korea Credit Rating Agency (KCRA) announced on the 30th that it has maintained DOOSAN Corporation’s unsecured corporate bond credit rating at ‘BBB+’ and upgraded the credit outlook from ‘Stable’ to ‘Positive.’ Previously, NICEHoldings also maintained DOOSAN’s unsecured corporate bond credit rating at ‘BBB+’ the previous day and upgraded the credit outlook from ‘Stable’ to ‘Positive.’

Han Shin Rating assessed that DOOSAN’s significantly improved profit-generating capacity in its core businesses, coupled with enhanced business stability across its affiliates—including the heavy industry division—is having a positive impact on its creditworthiness as a holding company.

In fact, its core Electronics Business Group (BG) is driving earnings growth. Last year, the Electronics BG recorded sales of 1.7 trillion won and operating profit of 407.4 billion won, surging 94.1% and 256.2%, respectively, compared to the previous year. In the first quarter of this year as well, it continued its explosive growth, posting revenue of 469 billion won and operating profit of 156.3 billion won—up 43.3% and 51%, respectively, compared to the same period last year.

Chae Seon-young, a senior analyst at Hanshin Rating, stated, “Driven by increased demand stemming from the expansion of the artificial intelligence (AI) market and the optimization of the product mix, the scale and operating profitability of the Electronics Division—its core business—have significantly improved,” adding, “Going forward, the company is expected to maintain robust performance based on excess demand for high-end copper-clad laminates (CCL) driven by favorable semiconductor market conditions and DOOSAN’s superior product capabilities.”

The solid performance of its heavy industry affiliates also serves as a key pillar supporting the company’s creditworthiness. DOOSAN ENERBILITY, a core subsidiary, has secured a series of large-scale contracts—including the supply of equipment for the Dukovany Nuclear Power Plant in the Czech Republic, an EPC project for a gas-fired combined-cycle power plant in the Middle East, and the supply of large gas turbines to the U.S.—expanding its order backlog to over 25 trillion won as of the end of March this year. Doosan Bobcat, too, is showing signs of a slowdown in earnings due to the prolonged period of high interest rates, but it is maintaining strong profitability, particularly in the U.S. market.

Senior Analyst Chae stated, “‘DOOSAN ENERBILITY has secured medium- to long-term revenue streams by enhancing both the volume and quality of its order backlog through the signing of large-scale contracts,’” and added, “Although Doosan Bobcat is also affected by factors such as the global economic slowdown, favorable exchange rate conditions, the resolution of uncertainties in the U.S. market, and the Trump administration’s second-term onshore policy are expected to partially offset weak demand, allowing the company to maintain strong overall profitability.”

The financial stability of the entire group is also being managed at a sound level. Despite a recent increase in working capital burdens, consolidated net debt as of the end of March this year remained at approximately 4.9 trillion won, thanks to the sale of DOOSAN ENERBILITY’s Vietnam subsidiary and the sale of a portion of DOOSAN’s stake in Doosan Robotics. On a consolidated basis, the debt-to-equity ratio stands at 161.1%, and the ratio of EBITDA to net debt is 2.1x, indicating sound leverage metrics.

In particular, the financial burden on DOOSAN itself, the holding company, has also eased. Last February, DOOSAN sold a portion (18.1%) of its stake in Doosan Robotics, securing a substantial cash inflow of 9477억 won.

Senior Analyst Chae noted, “Due to the multi-tiered ownership structure and limited ownership stakes in core affiliates, the sharing of cash flows from affiliates is constrained, resulting in a structural subordination of the holding company’s debt,” but added “However, the sale of the robotics stake earlier this year has eased its own financial burden, and the financial flexibility derived from the electronics division’s enhanced cash generation capacity and the value of its held assets is reinforcing the holding company’s financial stability,” he explained.

Han Shin Rating plans to closely monitor cash flow trends resulting from the volatility of working capital in the heavy industry sector and plans to expand capital expenditures (CAPEX) to increase production capacity, while also continuously monitoring whether the company maintains business relationships with new customers and the level of fluctuation in the holding company’s own financial stability.

Furthermore, if the acquisition of SK Siltron shares—for which the company has been selected as the preferred bidder—is finalized, Han Shin Rating plans to comprehensively review the resulting effects on business competitiveness and the impact of increased short- to medium-term debt burdens, and reflect these findings in the credit rating.