NICE Investors Service Upgrades Long-Term Credit Ratings of Kiwoom Capital and Kiwoom F&I from 'A-' to 'A'

NICE Investors Service has upgraded the credit ratings of Kiwoom Capital and Kiwoom F&I from 'A- (Positive)' to 'A (Stable)'.

On April 24, NICE Investors Service announced that it has upgraded Kiwoom Capital's senior unsecured bond credit rating from 'A- (Positive)' to 'A (Stable)', and raised the credit ratings for commercial paper and electronic short-term bonds from 'A2-' to 'A2'.

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The upgrade was attributed to enhanced business stability based on business portfolio diversification, as well as the company's growth potential secured through continued paid-in capital increases. As of the end of last year, Kiwoom Capital's business portfolio was composed of 38% corporate finance, 27% real estate finance, 23% retail finance, and 13% investment finance. NICE Investors Service stated, "While Kiwoom Capital initially grew its assets focusing on real estate and corporate finance, the asset size has since grown stably, which has enhanced business stability. Furthermore, a paid-in capital increase of 70 billion won is scheduled for May this year, which is expected to further strengthen the company's business foundation."

NICE Investors Service also cited the enhanced profitability, based on improved returns from managed assets, as another reason for the credit rating upgrade. The agency said, "The outlook for continued profitability improvement is based on increased returns from managed assets, active recovery efforts in the event of deteriorating asset quality in real estate project financing, and prudent management of credit loss costs, as well as the current level of interest rates for newly issued bonds." It added, "As of the end of last year, the total asset leverage ratio stood at 6.3 times, which is considered a strong level."

NICE Investors Service also raised the corporate credit rating and senior unsecured bond rating of Kiwoom F&I from 'A- (Positive)' to 'A (Stable)', and upgraded the ratings for commercial paper and electronic short-term bonds from 'A2-' to 'A2'.

Regarding the upgrade, NICE Investors Service stated, "Based on continued paid-in capital increases, Kiwoom F&I has secured a solid market position in the NPL investment industry, and business stability has improved in a favorable industry environment. With enhanced profit-generating capacity leading to accumulated internal profits, the company has maintained strong capital adequacy, supported by paid-in capital increases within the group."

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