Korean companies hit by rating downgrades

Seoul

SOUTH Korea's debt rating downgrades are exceeding upgrades by the most since 1998, prompting companies to boost sales of riskier hybrid securities to improve their balance sheets.

The credit scores of 45 local borrowers were cut in the first nine months while only 10 companies were raised by Korea Investors Service, a local affiliate of Moody's Investors Service.

Issuance of hybrid securities that have components or conditions that allow them to be treated as equity for …