JTBC Defaults on 20.6 Billion Won Debt..."Will Mobilize All Means to Resolve"

Production and Broadcasting of Content Continue as Normal
Credit Ratings of Affiliates Including JoongAng Ilbo Also Downgraded

JTBC's credit rating has been downgraded after it failed to repay 20.6 billion won in securitized borrowings on time.

According to Yonhap News on the 12th, JTBC released a statement on the same day, saying, "Today, we have encountered a payment default on certain bonds."

JTBC logo. Provided by JTBC

Regarding this, JTBC explained, "The media environment is rapidly changing, especially around digital and online video services (OTT), and as a result, the TV broadcast advertising market has significantly contracted. External conditions have deteriorated." The company added, "With a sense of responsibility, we will do our utmost to resolve this situation as quickly as possible by mobilizing all available internal and external measures."

Production and broadcasting of news, major sports events, and other broadcast content continue to operate normally.

On this day, NICE Investors Service downgraded JTBC's unsecured bond credit rating from 'BBB/Negative' to 'CCC.' The short-term credit ratings for commercial paper (CP) and electronic short-term bonds were also lowered from 'A3' to 'C.'

This downgrade was due to JTBC's failure to repay the principal and interest on its securitized borrowings on time. NICE Investors Service judged that JTBC's non-fulfillment of repayments totaling 20.6 billion won in securitized borrowings—5.6 billion won for Mir J First Securitization and 15 billion won for Cheil TBC J Second Securitization—has greatly increased its liquidity risk. Korea Ratings·KR also downgraded JTBC from 'BBB (Negative)' to 'BB (Under Negative Review)' for long-term credit, and from 'A3' to 'B (Under Negative Review)' for commercial paper and electronic short-term bonds, stating, "There is a growing possibility of financial risk spreading within the group, and uncertainty regarding liquidity has increased."

The long-term credit rating for JoongAng Ilbo was also lowered from 'BBB (Negative)' to 'BB-,' and its short-term credit rating was downgraded from 'A3' to 'B-.' The short-term credit rating for JoongAng Ilbo M&P was also lowered from 'A3' to 'B-.'

This content was produced with the assistance of AI translation services.