Full government ownership and oversight structure reflected in ratings

Ratings expected to support bond issuance and stable funding

The Korea-US Strategic Investment Corporation has received credit ratings from Moody's and S&P Global Ratings equivalent to those of the South Korean government, reflecting its role as a policy financial institution carrying out strategic investment projects between the two countries and its close ties to the government.

Park Jong-won, president of the Korea-US Strategic Investment Corporation [Yonhap]
Park Jong-won, president of the Korea-US Strategic Investment Corporation [Yonhap]

The Korea-US Strategic Investment Corporation announced Monday that it had received long-term credit ratings of Aa2 from Moody's and AA from S&P. Both agencies assigned a stable outlook.

The ratings are the corporation's first international credit assessments since its establishment, with both agencies placing it on par with the South Korean government.

Moody's and S&P noted that the corporation was established under a special act as a policy financial institution to carry out strategic investment between South Korea and the United States. Both cited its nationally significant policy role and close relationship with the government as key factors in their assessments.

The government's full ownership of the corporation and the oversight framework in place were considered major factors. On that basis, both agencies assigned the corporation the same long-term credit rating as the South Korean government.

The corporation said the ratings are expected to help it establish credibility in international financial markets and lay the groundwork for stable funding, including through the future issuance of Korea-US strategic investment bonds.


y2k@heraldcorp.com