On the 10th, according to the financial investment industry, Koramco Asset Trust recently received an 'A' (stable) credit rating for corporations and a short-term credit rating of 'A2' from Nice Credit Rating. This is seen as a meaningful report card amid a decline in the credit ratings of real estate trust companies.
With the confirmation of this credit rating, Koramco has maintained the highest credit rating in the real estate trust industry for eight consecutive years. The short-term credit ratings of Korea Asset In Trust and KOREIT, which are evaluated as leaders in the real estate trust industry, are 'A2-'. Trust companies affiliated with financial groups, such as Shinhan Asset Trust (A-), Woori Asset Trust (A2-), and Kyobo Asset Trust (A-), also have credit ratings one level lower than Koramco.
Recently, the risk of contingent liabilities related to responsible completion-type managed land trusts (hereinafter referred to as responsible completion trusts) has materialized, leading to consecutive downgrades in the credit ratings of real estate trust companies. A responsible completion trust is a business model where, in the event that the builder fails to complete on time due to financial difficulties, the real estate trust company undertakes the completion obligations in place of the builder. Since last year, as builders could not meet their completion obligations due to skyrocketing construction costs and high interest rates, the completion responsibilities have been completely transferred to the real estate trust companies. Consequently, the losses for these companies have been snowballing, becoming a major factor in the decline of credit ratings.
Unlike the overall sense of crisis in the real estate trust industry, Nice Credit Rating identified Koramco's diverse business portfolio as the reason it can steadily achieve results. Nice Credit Rating projected that "Koramco has a stable business foundation centered around the institutional sector of REITs and will maintain its top position in related markets based on its diversified business portfolio."
Currently, Koramco holds about 20% market share in the domestic private REIT market, making it the number one company in market share. Yoon Gi-hyun, a senior researcher at Nice Credit Rating, noted that "Koramco Asset Trust possesses differentiated business competitiveness in the expanding market size of REITs, coupled with its long-standing experience in the land trust sector and its strategy of diversifying its business portfolio, resulting in excellent business stability."