Moody's: GS Engineering outlook negative

Moody's Investors Service said it revised to negative from stable the outlook for its Baa3 issuer rating on GS Engineering & Construction Co., Ltd.

"The negative outlook reflects primarily an increase in GS E&C's vulnerability due to the apparent weakening Korean housing market, a situation exacerbated by the company's substantial payment guarantees to property developers," Chris Park, a Moody's vice president, said in a statement.

The rating could be downgraded if the company's liquidity position weakens materially or its operating cash flow deteriorates substantially, evidenced by adjusted debt-to-EBITDA ratio above 3.5 times to 4 times, the agency said.

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