Korea Investment & Securities' rating raised to 'A' by Japan's JCR, strengthening overseas funding base

[Financial News] Korea Investment & Securities Co., Ltd.'s foreign-currency long-term issuer credit rating has been upgraded by one notch by a Japanese credit rating agency. The upgrade reflects recognition of its diversified business portfolio, profitability and capital adequacy. It is expected to help raise the company's standing in the Japanese bond market and strengthen its overseas funding base. On the 15th, Korea Investment & Securities Co., Ltd., a subsidiary of Korea Investment Holdings, said Japan Credit Rating Agency (JCR) had raised its foreign-currency long-term issuer credit rating from 'A-' to 'A'. The outlook was changed from 'Positive' to 'Stable'. Its bond credit rating was also raised from 'A-' to 'A'.
In a report released on the 13th, JCR cited Korea Investment & Securities' solid profitability, diversified business portfolio, strong capital adequacy and liquidity as key reasons for the upgrade.
The company was credited with building a stable earnings structure by delivering balanced results across its key business lines, including brokerage, wealth management, investment banking (IB) and trading. The analysis said that the wealth management division's contribution to earnings had increased with expanded sales of financial products, while steady profits from the IB and trading divisions had also strengthened complementarity among its businesses.
Earnings growth was also notable. Korea Investment & Securities' net operating revenue last year was approximately 3.1 trillion won, up 39% from the previous year. In the first half of this year, it recorded approximately 2.4 trillion won, a 50% increase from the same period a year earlier. JCR said the company had maintained strong profitability, supported by a high return on equity (ROE) and efficient cost management.
The company also received a positive assessment of its financial soundness. At the end of last year, Korea Investment & Securities' net capital ratio (NCR) stood at 2,929%, far above the regulatory benchmark of 100%. Its leverage ratio was 644%, below the regulatory cap of 1,100%, while its liquidity ratio was 122%, exceeding the regulatory benchmark.
JCR said the company had built up loss-absorbing capacity to respond to business expansion and market fluctuations through the continuous accumulation of earnings and capital increases.
The expansion of its global business was also factored into the assessment. Korea Investment Financial Group is broadening its overseas business base by conducting IB business in the United States and Hong Kong and brokerage business in Vietnam and Indonesia. JCR also noted the possibility that global business expansion could lead to greater diversification of revenue sources across regions.
The rating upgrade is expected to help improve the company's overseas funding conditions, alongside its track record of issuance in the Japanese bond market.
In 2023, Korea Investment & Securities became the first domestic securities firm to issue a Samurai bond worth 20 billion yen. It followed that with a 10-billion-yen issuance in 2024 and successfully issued yen-denominated bonds worth 36 billion yen this July. In this year's issuance, it offered a five-year long-term bond for the first time, broadening its base of local institutional investors.
A Korea Investment & Securities spokesperson said, "This credit rating upgrade reflects recognition of our diversified business competitiveness and stable financial soundness. We will continue to raise our standing in global financial markets and strengthen the competitiveness of our overseas business, backed by a stable funding base."

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