Hanwha's A- Rating
Hanwha Aerospace earns S&P A- rating, enhancing global defense and space competitiveness.
Key Points
S&P said an “A-” rating indicates more than basic investment-grade status: it “designates a company as a safe and reliable investment target,” with Hanwha receiving the rating plus a “stable” outlook.
S&P framed Hanwha’s backlog not only as ~37 trillion won but also in dollar terms, describing it as around $24.1 billion as of end-2025.
The rating was described as opening “new avenues” for Hanwha “to raise capital in overseas markets,” beyond the negotiations/partnership confidence emphasized elsewhere.
Hanwha CFO Kim Cheol-hong linked the rating to negotiation trust, saying: “Obtaining an excellent global credit rating is a key factor in securing trust in negotiations with overseas governments and local investors,” and adding it would strengthen competitiveness across “defense, space and aerospace.”
Hanwha Aerospace has received an 'A-' credit rating from S&P Global, with a stable outlook — making it the first South Korean defense company to earn a global credit rating from a major international agency, according to SE Daily and Star News Korea. The rating places Hanwha in the same investment-grade tier as Lockheed Martin and BAE Systems.
S&P said the 'A-' grade means more than basic investment status. It marks Hanwha as a 'safe and reliable investment target,' Defence Industry Europe reported. The company's order backlog is expected to hit 37 trillion won — roughly $24.1 billion — by the end of 2025.
Why S&P Gave Hanwha This Historic Grade
S&P pointed to several strengths. Hanwha has been expanding exports fast, especially to Europe and the Middle East. Its weapons work with NATO standards. And it can deliver arms quickly — a key advantage when Western suppliers face long wait times, according to Defence Industry Europe.
The agency also flagged Hanwha's role in South Korea's national security as a stabilizing factor. S&P forecast steady revenue growth and improving profits. The company's debt levels remain modest, partly because big export clients pay upfront, per SE Daily.
A $24 Billion Backlog Fuels Investor Confidence
Hanwha's order backlog is a core reason S&P feels confident. The $24.1 billion pipeline — spanning howitzers, rocket systems, and armored vehicles — gives lenders and governments clear visibility into future revenue, according to Star News Korea.
Poland, Australia, and Middle Eastern nations have all signed major contracts with Hanwha in recent years. The company's ability to deliver K9 howitzers to Poland within months of contract signing showed it could move faster than rivals. That speed is now baked into the rating.
Rating Opens Doors to Cheaper Global Capital
The 'A-' grade does more than signal stability. It gives Hanwha new ways to raise money in overseas markets at lower interest rates. CFO Kim Cheol-hong said: 'Obtaining an excellent global credit rating is a key factor in securing trust in negotiations with overseas governments and local investors.'
He added the rating would 'strengthen our global competitiveness across defense, space, and aviation.' According to World News, this is also the first time any Korean defense firm has received a long-term issuer credit rating from a global agency — a gap that had made sovereign-level deals harder to close.
What the Rating Means for K-Defense's Global Rise
South Korea has set a goal to become the world's fourth-largest arms exporter by 2027. Hanwha's 'A-' rating is a major step toward that. Governments signing 20- or 30-year maintenance deals want proof a supplier will survive. An S&P grade at this level provides that proof, Defence Industry Europe noted.
The rating also positions Hanwha to pursue acquisitions and joint ventures in Western aerospace. With a stable 'A-' on its books, the company can bid more credibly in tenders across Romania, Canada, and beyond — and may pave the way for other Korean defense firms like LIG Nex1 and Korea Aerospace Industries to seek similar ratings.
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