DHIC improves financial health by selling shares, financial assistance

Doosan Heavy Industries & Construction Co. (DHIC) improved its financial status health on the back of Doosan Group's self-rescue plan, which involved selling new shares and assets.

It also received a financial boost from its holding company Doosan Corp. and key shareholders.

NICE Investors Service s, a local rating appraiser, retained DHIC's long-term rating at BBB, the lowest tier of investment-grade.

It has been on the credit watch list due to lingering uncertainties over cash flow.

In March, DHIC borrowed cash worth 3 trillion won from its creditors and state-run banks -- the Korea Development Bank and the Export-Import Bank of Korea -- to brace itself for its short-term debts worth 4.2 trillion won, which should be paid within this year.

On Sept. 4, DHIC announced its plan to sell new shares and assets of the power plant builder and assets of the holding company Doosan to satisfy its 3 trillion-won debt.

Analysts said that DHIC failed to keep up with the times with the size of the global coal-fired power plant market has been contracting since 2015 when the Paris Agreement, a landmark environmental deal, was adopted to cut greenhouse gas emissions.