Jungjingong Maintains 'Aa2' and 'Stable' Rating Outlook from Moody's

"Leading Socially Responsible Investment through ESG Bond Issuance in Financial Markets"

Small and Medium Business Corporation

[Asia Economy Reporter Kim Cheol-hyun] The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 20th that Moody's, one of the world's top three credit rating agencies, maintained SBC's long-term credit rating at 'Aa2', 'Stable', the same as the national credit rating.

An SBC official explained that Moody's mentioned "the differentiation from other SME support institutions in that SBC carries out various public programs to support small businesses and startups severely affected by the spread of COVID-19 and provides stable long-term financing to SMEs in need," adding, "SBC's public duty to quickly supply liquidity to SMEs and startups during the COVID-19 pandemic has become even more important."

Since its establishment in 1979, SBC has obtained the same national credit rating as the government from international credit rating agencies S&P and Fitch since 2002. In August, Fitch maintained SBC's long-term credit rating at 'AA-', 'Stable', the same as the national credit rating.

Furthermore, as social risks such as the spread of COVID-19 have increased, the importance of social value investment has been highlighted, and demand for ESG bond investment in the financial market has surged. From last year to November this year, SBC has issued a total of 7.4 trillion KRW in ESG bonds. ESG bonds are bonds issued for special purposes such as Environment, Social, and Governance improvements.

In particular, this year, SBC is leading the domestic ESG won-denominated bond issuance market by issuing all of its bonds as ESG bonds. An SBC official stated, "All funds raised through social bond issuance are used as policy fund loan resources for small and medium venture businesses to create jobs, revitalize the economy, and overcome COVID-19," and evaluated, "Moody's recent rating also focused on SBC's strengthened role as a policy institution supporting the government's agenda to promote economic growth."

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