Global credit rating agency Standard and Poor’s(S&P) says credit rating downgrades for South Korean firms will likely continue for the time being.  

S&P on Wednesday said a third of South Korean firms subject to its ratings are expected to be slapped with a “negative” outlook or put on “credit watch negative.”

The agency said the downgrading is a continuation from a trend observed last year, but now it's being facilitated by the damaging spread of the novel coronavirus. It said it would likely hold up further given the prospect of local companies’ worsening profitability in the first half of this year. 

S&P singled out local refineries as likely candidates for rating adjustments, citing their potential losses due to a plunge in oil prices and slowing demand, along with the airline, hotel and distribution industries.