Korea’s nonfinancial companies will maintain a stable corporate ratings level this year, but its export-dependent companies may be held down by the continuing appreciation of the Korean won, said the global credit ratings provider Moody’s Investors Service.

“The overall trend is stable and 84 percent of our client companies have stable ratings outlooks, though the number of downgrades will outpace that of upgrades,” said Chris Park, vice president of Moody’s Hong Kong, in a press briefing on Tuesday.

Despite the weaker-than-expected growth level, the macroeconomic conditions are supportive, with a mild rebound in domestic and advanced economies, he explained.

The progress is to be more conspicuous in the public sector than in the private sector, as government-related issuers will continue to benefit from state support.

“Regardless of the business sector or the government-affiliation, companies which take up an aggressive investment in the near future may face a ratings downgrade,” Park said.

A major example was the nation’s top steelmaker POSCO, which was downgraded from “Baa1” to “Baa2” in November, considering its sizeable investments in manufacturing facilities.

“The steel, refinery and chemicals sectors in general will continue to face a hard year ahead,” the Moody’s official added.

“Most of the leading companies have expanded their manufacturing capacities but are not likely to see a visible rise in terms of net profits.”

These industries, together with the automobile and construction sectors, may also be hit by the continuous appreciation of the Korean won against major currencies.

The won-dollar exchange rate has been on a steady decline this quarter, hitting the 1,021.5 level last Thursday, the lowest since the global financial crisis.

“The specific impact on each individual company, of course, depends on the corresponding company’s financial net profit margin, the so-called financial cushion,” Park said.

Market leaders such as Hyundai Motor and Samsung Electronics are more likely to stand up to external factors, whereas smaller, marginal businesses will suffer more.

The ratings service provider gave a positive appraisal of Korea’s state-owned companies, considering the government’s extensive debt reduction plans.

“But in order for these plans to take the intended financial effect, the companies first have to go through unpredictable processes such as assets disposal,” Park added.

By Bae Hyun-jung (tellme@heraldcorp.com)