NICE Investors Service has downgraded JTBC's credit rating from "BBB0" to "CCC" after the broadcaster failed to repay about 20 billion won in securitized borrowings due that day.
On the 12th, NICE Investors Service released a report stating it had lowered JTBC's unsecured bond credit rating from "BBB0, negative" to "CCC." Its short-term credit rating, which applies to commercial paper (CP) and electronic short-term bonds, was also downgraded from "A3" to "C." Under NICE Investors Service's rating system, "CCC" signifies that default is possible, indicating a highly speculative status.
NICE Investors Service said it adjusted the rating because JTBC failed to repay bonds due that day on time. JTBC faced the maturity of 20.6 billion won in securitized borrowings that day, including 5.6 billion won from Mir Je-2-cha and 15 billion won from Jeil TVC Je-2-cha. After it emerged that JTBC could not repay these, NICE Investors Service concluded that the company's liquidity risk had increased significantly.
Last year, JTBC transferred loan receivables it held to Mir Je-2-cha, a special purpose company (SPC), securitizing 5.6 billion won. In 2024, it had also converted 15 billion won in loan receivables into cash through asset-backed short-term bonds (ABSTB) via Jeil TVC Je-2-cha. Hanyang Securities served as the lead manager for both financings.
Also on the 12th, Korea Ratings said it had downgraded JTBC's corporate bond credit rating from "BBB0, negative" to "BB."
