Moody's on Sept. 17 downgraded Samsung Securities Co. Ltd.'s foreign currency long-term issuer rating to Baa2 from Baa1, citing weakening funding and liquidity profile, but changed its outlook to stable from negative on stable profitability.
The South Korea-based company has issued more structured notes to meet rising investor demand, which left the company more dependent on short-term funding and led to weaker funding and liquidity ratios, the ratings agency said.
Moody's added the company's asset risk is heightened due to its increased exposure to corporate bond holdings and corporate credit lending as a percentage of its shareholders' equity.
The agency affirmed Samsung Securities' foreign currency short-term issuer rating at P-2.
