Following S&P, Moody's Also Upgrades Mirae Asset Securities' Credit Rating Outlook

Rating outlook upgraded from 'Negative' to 'Stable'... Corporate credit rating maintained at 'Baa2'
Reflecting excellent business capabilities, liquidity, and funding levels as the largest securities firm in Korea by assets

[Asia Economy Reporter Song Hwajeong] Following the international credit rating agency Standard & Poor's (S&P), Moody’s also upgraded the credit rating outlook for Mirae Asset Securities.

On the 11th, Moody’s announced that it had revised Mirae Asset Securities’ credit rating outlook from "negative" to "stable," reflecting "the implementation of regulatory soundness measures by authorities and appropriate risk management." The corporate credit rating of 'Baa2' remains unchanged.

Moody’s explained the rationale for the upgrade in the credit rating outlook, stating, "The growth of Mirae Asset Securities’ risk assets is expected to moderate," and "considering Mirae Asset Securities’ plans to reduce contingent liabilities and real estate-related exposures, risk appetite, leverage, and funding are expected to improve."

Mirae Asset Securities’ corporate credit rating reflects ▲ its excellent business capabilities as the largest securities firm in Korea based on assets ▲ moderate liquidity and funding levels considering its high reliance on short-term financing but credit lines from Korea Securities Finance Corporation and financial institutions ▲ relatively moderate but volatile earnings due to significant investment assets ▲ standalone credit strength that incorporates moderate risk appetite and leverage expanding through equity investments, asset management products, and short-term financial business-related assets, as well as business scale and the importance of Mirae Asset Securities in the domestic capital market, and the institutional ability to utilize liquidity support from the Bank of Korea and Korea Securities Finance Corporation, all of which imply a very high correlation with the creditworthiness of the Korean government.

Moody’s added, "If the proportion of long-term funding continues to increase, profitability improves and its volatility decreases, and the operating environment of the Korean securities industry improves in a combined manner, Mirae Asset Securities’ credit rating could be upgraded."

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