KTB Securities Upgrades Corporate Credit Rating to 'Positive'

Positive Reviews on Improvement of Financial Soundness and Profitability

[Asia Economy Reporter Minwoo Lee] KTB Investment & Securities' corporate credit rating outlook has been upgraded from 'A- (Stable)' to 'A- (Positive)'.

On the 1st, NICE Credit Rating announced through a credit rating disclosure that it had changed KTB Investment & Securities' rating outlook accordingly. This decision was made considering the sustained excellent profitability, expanded capital buffer, and improved financial stability.

KTB Investment & Securities saw improvements in overall business segment performance, including brokerage, investment banking (IB), equity management, and proprietary investment (PI) related to derivatives. Notably, this year, KTB Network generated 117.7 billion KRW in gains from the disposal of affiliates through dividend income and pre-IPO equity sales before listing.

Additionally, since last year, the company has been reducing the burden of accumulated unpaid dividends by redeeming convertible preferred shares. Since September, it has also improved capital adequacy indicators by issuing a total of 95 billion KRW in subordinated bonds.

Asset soundness is also evaluated as excellent. As of the end of September, the proportion of assets classified as below fixed (non-performing) among assets subject to soundness classification was low at 0.7%, and the proportion of net assets below watchlist has consistently remained at 0.0%.

KTB Investment & Securities plans to systematically manage key issues such as follow-up work after completing the acquisition of shares in Eugene SB Holdings (Eugene Savings Bank) and capital expansion on a consolidated basis due to the listing of KTB Network, striving to upgrade its credit rating.