Jungjingong Maintains 'Stable' Outlook for Korea's Highest Overseas Credit Rating

Moody's Aa2, Fitch Ratings AA- ... Same as Sovereign Credit Ratings
Efforts to Overcome COVID-19 Including Loan Principal and Interest Maturity Extensions and Emergency Management Stabilization Funds

[Asia Economy Reporter Kim Cheol-hyun] The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 13th that it received a long-term credit rating opinion of 'Aa2' and 'Stable' from Moody's, one of the world's top three credit rating agencies, which is the same as the national credit rating.

In its credit opinion, Moody's stated, "Since the COVID-19 pandemic, SBC has implemented various support programs such as loan principal and interest maturity extensions and emergency management stabilization fund loans for small and medium ventures in industries affected by COVID-19," highlighting SBC's differentiated role in supplying long-term, low-interest funds to small and medium ventures, as well as SBC's policy position responsible for small business support policies and the high possibility of fiscal support in emergencies.

In August, Fitch Ratings also maintained SBC's long-term credit rating at 'AA-' and 'Stable,' the same as the national credit rating. This considered the increased proportion of SBC's support for the normalization and stabilization of small business activities and its important role in small business growth. SBC explained that since its establishment in 1979, it has obtained the same national credit rating as the government from international credit rating agencies since 2002.

Meanwhile, SBC issued ESG (Environmental, Social, and Governance) bonds for the first time in 2019 to secure funds for small business policy financing and has issued a total of 13.7 trillion KRW in ESG bonds to date. The policy funds raised through this are being used for job creation, overcoming COVID-19, and revitalizing the economy. Recently, SBC has introduced new types of ESG products to the market and provided investors with diverse options, such as issuing a 50 billion KRW 'social structured bond' aimed at supporting small businesses facing management difficulties due to rising logistics costs and raw material supply instability.

Chairman Kim Hak-do said, "The evaluations by Moody's and Fitch Ratings of SBC focused on its differentiated role as a policy institution supporting small businesses in overcoming COVID-19 damage," adding, "Based on a stable credit rating, SBC will continue to play a leading role in spreading socially responsible investment by issuing ESG bonds to secure funds for small business policy financing."

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