K-FINCO Maintains S&P's 'A+' International Credit Rating for Second Consecutive Year

[Financial News] K-FINCO, the mutual aid association for specialty construction contractors, has maintained an 'A+' rating for the second consecutive year in Standard & Poor's (S&P) insurance financial strength assessment.
According to K-FINCO on the 2nd, S&P assigned the association an international credit rating of A+ on the 29th of last month. K-FINCO said it became the first construction-related mutual aid association in South Korea to receive an S&P A+ rating last year.
The assessment reflected the stability of its operations based on its legal foundation, its policy role in the construction industry and its capital strength.
S&P expects K-FINCO to maintain strong capital strength over the next two years, supported by continued new capital contributions and diversified investment allocation.
Total guarantee exposure is being managed at approximately 7.5 times equity, while the risk-based capital ratio remains at 480%. Based on these figures, S&P assessed the association as having a sufficient capital buffer.
The investment portfolio is managed primarily through cash-equivalent assets and bonds. The association is also gradually increasing alternative investments to diversify its sources of income, giving it a foundation to respond to uncertainty in the construction market.
S&P expects K-FINCO to maintain sound profitability, based on its position in South Korea's construction guarantee market and its competitive strength specialized in the specialty construction industry.
The chairman of K-FINCO said, "The maintenance of the 'A+' rating is the result of international recognition of K-FINCO's capital strength and important role in the construction industry," adding, "We will continue to maintain a sound financial structure through rigorous risk management and fulfill our role as a reliable pillar for our members and as South Korea's leading construction finance institution."
Earlier, in April, Moody's upgraded K-FINCO's international credit rating from 'A3·Positive' to 'A2·Stable'. In June, K-FINCO maintained Fitch's A+ rating.
[email protected] Choi Ga-young Reporter