Japan's JCR Upgrades Korea Investment & Securities' Rating to 'A'

Korea Investment & Securities said on October 15 that Japan Credit Rating Agency (JCR) had upgraded its foreign-currency long-term issuer credit rating by one notch, from 'A-' to 'A'. The outlook was changed from 'Positive' to 'Stable'.

In a credit rating report released on October 13, JCR cited Korea Investment & Securities' solid profitability, diversified business portfolio, and strong capital adequacy and liquidity as key reasons for the upgrade. Its bond credit rating was also raised from 'A-' to 'A'.

JCR said Korea Investment & Securities had established a stable earnings structure, delivering balanced results across its major business segments, including brokerage, asset management (AM), investment banking (IB), and trading. In particular, it analyzed that the earnings contribution from asset management had increased as sales of financial products expanded, while the IB and trading businesses also generated stable profits, further strengthening the complementary earnings structure across business segments.

Its earnings growth and capital efficiency were also viewed positively. Korea Investment & Securities' net operating revenue in 2025 was approximately KRW 3.1 trillion, up 39% from the previous year, and it recorded approximately KRW 2.4 trillion in the first half of this year, 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.

JCR also assessed that the company had sufficient loss-absorption capacity to respond to business expansion and market fluctuations in terms of capital adequacy and liquidity. At the end of 2025, Korea Investment & Securities' net capital ratio (NCR) was 2,929%, well above the regulatory requirement of 100%, while its leverage ratio was 644%, below the regulatory ceiling of 1,100%. Its liquidity ratio also remained above the regulatory requirement, at 122%.

JCR also viewed positively the expansion of the Korea Investment Financial Group's overseas business base, including its IB business in the United States and Hong Kong and its brokerage business in Vietnam and Indonesia.

The upgrade is considered significant as it recognizes Korea Investment & Securities' profitability and financial soundness through an overseas credit rating agency. The company said it expects the upgrade, together with its track record of issuance in Japan's bond market, to boost the confidence of local investors and contribute positively to improving overseas funding conditions and diversifying its funding markets.

A Korea Investment & Securities official said, "This credit rating upgrade reflects recognition of our diversified business competitiveness and stable financial soundness. We will continue to enhance our standing in global financial markets and strengthen our competitiveness in overseas businesses on the basis of a stable funding base."

This content was produced with the assistance of AI translation services.