S. Korea-U.S. investment firm gets credit ratings with stable outlooks

By Kang Yoon-seung

SEOUL, Oct. 26 (Yonhap) -- Global credit rating agencies have assigned ratings in line with South Korea's sovereign ratings to the state-run company tasked with implementing Seoul's US$350 billion investment pledge to the United States, the firm said Monday.

The Korea-U.S. Strategic Investment Corporation (KUIC) said Moody's Ratings assigned it an Aa2 issuer rating with a stable outlook, while S&P Global Ratings assigned it long-term credit ratings of AA.

These were the company's first credit ratings since its launch earlier this year.

"KUIC's rating is driven by the Government of Korea's very high willingness and ability to provide timely support, given the strong credit linkages between KUIC and the Government of Korea," Moody's Ratings said in a release.

"The government's strong ability to support KUIC is underpinned by the sovereign's ample financial reserves and strong creditworthiness, as reflected in its Aa2 rating," it added.

S&P Global Ratings noted its assessment of KUIC reflects its view that "the institution has an almost certain likelihood of receiving timely and sufficient support from the Korean government in times of need."

"This is based on the institution's critical policy role for, and integral link with, the Korean government. We therefore equalize our ratings on KUIC with the sovereign rating on Korea," S&P added.

KUIC said the latest ratings would help bolster its credibility in international financial markets and pave the way for stable funding.

The company officially launched in June after the National Assembly passed the Special Act for Korea-U.S. Strategic Investment Management in March.

In October last year, Seoul and Washington reached an agreement on South Korea's $350 billion investment pledge made in return for lower U.S. tariffs.

The investment will comprise $150 billion for shipbuilding cooperation and $200 billion for projects in various strategic sectors.

colin@yna.co.kr
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