Daol Investment & Securities Upgrades Corporate Credit Rating to 'A (Stable)'... Accelerating Leap to Comprehensive Financial Group

[Asia Economy Reporter Kwon Jae-hee] Daol Investment & Securities' corporate credit rating has been upgraded by one notch to 'A (Stable)'. This achievement follows the 'A (Stable)' rating granted by Korea Ratings on the 2nd and is significant given the unfavorable environment surrounding the securities industry.

On the 19th, Daol Investment & Securities announced that NICE Credit Rating had upgraded its credit rating by one notch to A through a credit rating assessment conducted the previous day. NICE Credit Rating cited the following reasons for the upgrade: ▲sustained excellent profitability, ▲the burden of accumulated unpaid dividends was resolved through the issuance of new Redeemable Convertible Preferred Shares (RCPS), and ▲excellent asset soundness.

Daol Investment & Securities continues to show a sharp performance increase across all business sectors, including strong results in the Investment Banking (IB) division. Last year, it achieved a net profit (consolidated basis) of 176.1 billion KRW, marking its highest annual performance, and in the first quarter of this year, it recorded an operating profit of 67.5 billion KRW, the highest quarterly operating profit ever.

In March, the company fully redeemed the RCPS issued in 2008, eliminating the burden of accumulated unpaid dividends. Additionally, it maintains excellent asset soundness by reducing the proportion of assets classified as substandard or below to 0.5% among assets subject to soundness classification.

Daol Investment & Securities expects that this credit rating upgrade will accelerate its growth into a comprehensive financial group. With an expanded network of trading institutions, its external credibility is expected to improve, which will, in turn, boost business activation. It also anticipates a reduction in funding costs and an enhancement in liquidity management capabilities.

Daol Investment & Securities stated, "We will further enhance the company's creditworthiness through thorough risk management, including stability of the profit structure, adequacy of capital, and management of contingent liabilities."

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