S&P cuts E-Mart to BBB-

S&P said it downgraded E-Mart Inc.’s rating to BBB- from BBB, citing weakening financial metrics and a tough retail environment.

S&P sees the company’s profitability weakening as consumer spending shifts to online retailers.

“In our view, the company's weakening profitability trend together with increasing investments for business diversification will lead to growth in debt over the next 12 months, straining its financial metrics,” said S&P in a news release.

The agency said the stable outlook mirrors its view that E-Mart with its strong brand and diversified channels will maintain its position in the market.

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