Hanwha Aerospace earns South Korea defense sector's first S&P rating

June 22 (Asia Today) -- Hanwha Aerospace has become the first South Korean defense and aerospace company to receive a global credit rating after S&P Global Ratings assigned the company an A- rating with a stable outlook.

Hanwha Aerospace said Monday that the rating would provide an important measure of financial credibility as it expands defense exports and negotiates investments with foreign governments.

"Securing a strong global credit rating is a key factor in establishing trust during discussions with overseas governments and negotiations involving local investment," said Kim Cheol-hong, chief financial officer at Hanwha Aerospace.

"Based on the S&P rating, we will further strengthen our global competitiveness across the defense, space and aerospace sectors," Kim said.

An A- rating is within S&P's investment-grade category and indicates that a company has a strong capacity to meet its financial obligations, although it may be somewhat vulnerable to adverse economic conditions.

Hanwha Aerospace said the rating places it in the same category as major international defense contractors including Lockheed Martin and BAE Systems.

S&P described Hanwha Aerospace as South Korea's largest defense contractor and said the company is positioned to benefit from growing global defense spending through major weapons systems including the K9 self-propelled howitzer and the Chunmoo multiple-launch rocket system.

The ratings agency identified the company's growing export base in Europe and the Middle East, its ability to deliver weapons quickly and the compatibility of its products with NATO standards as key competitive strengths.

S&P also cited Hanwha Aerospace's strategic importance to South Korea's national security and its order backlog of about 37 trillion won, or approximately $24.5 billion, at the end of 2025.

The ratings agency said the backlog should support continued revenue growth and improved profitability.

Industry officials said the rating carries significance beyond the company's financial position because international credit ratings are often used to assess corporate credibility during government procurement, foreign investment negotiations and financing arrangements.

The rating could also support Hanwha Aerospace as it expands beyond Europe and the Middle East into markets including the United States and Australia.

-- Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260622010007457

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This story was originally published June 22, 2026 at 4:58 PM.