Moody's rates E-Mart A3

Moody's Investors Service said it assigned an A3 issuer rating to E-Mart Co.

The agency also said it affirmed the A3 rating on the $200 million senior unsecured bonds issued by Shinsegae Co. Ltd. and assumed by E-Mart.

The outlook is stable.

Moody's also said it affirmed and withdrew the A3 issuer rating on Shinsegae for its own business reasons.

E-Mart was established on May 2 as a result of the de-merger of Shinsegae into two separate entities: E-Mart and Shinsegae, the agency said.

According to the reorganization plan, the former company's assets and liabilities have been split 74/26 between E-Mart and Shinsegae, Moody's said.

E-Mart's ratings reflect the leadership position of the company's hypermarkets business in Korea and its low cyclicality, given that more than 60% of its revenue comes from non-discretionary products, the agency said.

E-Mart's pro forma financial profile will be slightly stronger than Shinsegae's, which somewhat offsets E-Mart's increased business concentration risk, Moody's said.

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