Korea Investment & Securities has won an 'A' long-term foreign currency issuer credit rating from Japan Credit Rating Agency (JCR), one of Japan's leading credit rating firms, a move expected to improve its funding conditions in Japanese and other global bond markets.
The brokerage said on the 15th that JCR raised its long-term foreign currency issuer rating by one notch to 'A' from 'A-'. JCR also lifted its bond rating to 'A' from 'A-' and changed the rating outlook to stable from positive.
In its report, JCR cited the firm's balanced business portfolio and profitability across brokerage, asset management, investment banking and trading. Strong sales of financial products have lifted the asset management unit's contribution to earnings, while the investment banking and trading divisions have delivered steady results, firmly establishing a diversified revenue structure, JCR said. The agency added that a high return on equity (ROE) and efficient cost management demonstrated the firm's earnings power.
Financial soundness and liquidity indicators also far exceeded regulatory requirements. As of the end of 2025, Korea Investment & Securities' net capital ratio (NCR) stood at 2,929%, well above the 100% regulatory threshold. Its leverage ratio was 644%, below the 1,100% regulatory ceiling. The liquidity ratio remained strong at 122%, which JCR assessed as providing an ample buffer to absorb external shocks.
The expansion of global operations and synergies among financial affiliates were also seen as positive factors. JCR pointed to the firm's continued overseas growth, including investment banking networks in the U.S. and Hong Kong and brokerage operations in Vietnam and Indonesia, which have diversified its revenue sources by region.
The upgrade is expected to further strengthen the firm's funding competitiveness in Japan. Korea Investment & Securities became the first South Korean brokerage to issue samurai bonds in 2023, selling 20 billion yen worth of the debt, followed by 10 billion yen in 2024 and 36 billion yen in July this year. "We will continue to raise our standing in global financial markets and aggressively expand overseas operations based on our strong funding competitiveness," an official at the firm said.