Moody’s Investors Service has revised its outlook on Emart from stable to negative. 

The global rating agency on Wednesday cited South Korea’s leading large-sized retail store chain's lackluster second quarter performance, while maintaining its Baa3 rating. The agency also said growing competition in the industry will likely negatively affect the firm’s profitability over the next few years.

Moody’s also warned that Emart’s debt will continue to swell unless it undertakes considerable levels of deleveraging.