NH Investment & Securities Obtains Industry-Top Credit Rating 'A3' from Moody's

Long-term Corporate Credit Rating Upgraded from 'Baa1' to 'A3'
Profit Generation through Synergies among NH Nonghyup Financial Group Affiliates

[Asia Economy Reporter Lee Seon-ae] NH Investment & Securities announced on the 23rd that it received an upgraded long-term issuer rating from ‘Baa1’ to ‘A3’ in the rating evaluation conducted by the international credit rating agency Moody’s. With this credit rating upgrade, NH Investment & Securities now holds the highest credit rating within the securities industry, which is expected to have a positive impact on both overseas and domestic investors going forward.

Moody’s credit rating upgrade reflects the enhancement of NongHyup Bank’s standalone creditworthiness, which in turn indicates that its major shareholder, NongHyup Financial Group, has an improved ability to support NH Investment & Securities through NongHyup Bank.

Moody’s evaluated that NH Investment & Securities plays a strategically important role within NongHyup Financial Group and that synergies can be created based on mutual interconnections through joint investments with affiliates of the NongHyup Financial Group. They also considered the fact that NH Investment & Securities contributes to programs aimed at improving the social and economic status of farmers through dividend payments to the National Agricultural Cooperative Federation.

Additionally, Moody’s positively assessed NH Investment & Securities’ appropriate liquidity management, smooth funding capabilities, sufficient profit generation, and relatively low profit volatility compared to competitors.

Meanwhile, NH Investment & Securities had previously received the highest credit rating among domestic securities firms, ‘AA+ (stable)’, from domestic credit rating agencies such as Korea Ratings and Korea Investors Service. With the upgrade from the international credit rating agency Moody’s, it is expected that future funding costs will be more favorable, facilitating smoother capital procurement.

Lim Gye-hyun, Head of the Management Strategy Division at NH Investment & Securities, stated, “We will continue steady efforts to upgrade our domestic and international credit ratings and become a more stable and attractive company for investment.”

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