Listed firms' interest coverage ratio declines in Jan-Sept

SEOUL, Nov. 25 (Yonhap) -- South Korean listed firms' ability to pay back debts
worsened in the first nine months of this year as the global economic downturn
weighed on their financial health, the bourse operator said Wednesday.
The interest coverage ratio of 558 companies listed on the Seoul main bourse
stood at an average 3.77 in the January-September period, compared with 6.34 the
same period last year, according to the Korea Exchange.
The ratio, or operating profit divided by interest costs, indicates a firm's
exposure to fluctuations in interest rates.
The exchange also said the number of companies which saw interest costs exceed
operating profits came to 135 firms, up 2.33 percent from a year ago.
The fall in the ratio came after the firms' interest charges sharply increased to
9.6 trillion won (8.3 billion) for the nine months from 7.2 trillion won a year
earlier, the bourse operator said.
pbr@yna.co.kr
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