Global credit rating agency Moody's raised the outlook on Shinhan Investment & Securities' credit rating to "stable."
According to Shinhan Investment & Securities on the 26th, Moody's maintained the company's long- and short-term foreign-currency corporate credit ratings at "A3" and "P-2," respectively, while raising the rating outlook. Moody's cited as key reasons for the improved outlook: ▲ improvement in the leverage ratio ▲ a favorable business environment ▲ a recovery in profitability.
As a result, Shinhan Investment & Securities regained the highest rating among securities firms in the market and became the top-rated private securities firm based on its standalone rating (Ba1).
Shinhan Investment & Securities said, "There have been internal control issues in recent years, but (Moody's) highly valued that companywide strengthening of internal controls and digital investment will help ease future earnings volatility and enhance risk management capabilities."
It added, "As a 100% subsidiary of Shinhan Financial Group, the improved profit contribution within the affiliates and the long-term, strategic importance it holds for the capital markets within the group were also taken into account."