S&P Global Ratings assigned South Korea-based Hana Financial Investment Co. Ltd. long- and short-term issuer credit ratings of A- and A-2, respectively.
The outlook on the long-term rating is stable, S&P said Sept. 2.
Hana Financial Investment's ratings reflect S&P's assessment that the company is a core subsidiary of Hana Financial Group Inc. and carries out several groupwide activities, including wealth management and corporate investment banking operations. Hana Financial Group is strengthening its nonbanking operations to diversify its revenues and to realize cross-selling benefits, and Hana Financial Investment mainly drives these initiatives, the rating agency noted.
In addition, S&P said it expects Hana Financial Investment and the group to maintain an adequate level of capitalization to support the former's business growth. It estimates the company's risk-adjusted capital ratio before diversification and concentration adjustments will remain adequate at 8.0% to 9.0% over the next one to two years, compared to 9.0% as at the end of June.
Hana Financial Investment will likely maintain adequate funding and liquidity over the coming few years, S&P said, adding that Hana Financial Group and KEB Hana Bank are expected to provide support on an as-needed basis.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.