Pitch, Samsung Securities Credit Rating Upgraded to 'BBB+'

2 Years After Receiving BBB Rating

Samsung Securities announced on the 14th that the global credit rating agency Fitch has upgraded the credit rating outlook for Samsung Securities.

Fitch upgraded Samsung Securities' credit rating from 'BBB' to 'BBB+' and assigned a 'stable' outlook, announcing this on the 7th. This upgrade comes about two years after Samsung Securities received the 'BBB' rating in October 2022.

Fitch cited Samsung Securities' role as a major securities firm in Korea providing brokerage, asset management, trading, and corporate finance services as the main reason for the upgrade. In particular, Samsung Securities' large retail customer base, which includes high-net-worth individuals, was highlighted as enabling stable revenue generation. The business model linked to Samsung Group's strong brand recognition was also positively evaluated. These factors demonstrate Samsung Securities' differentiated competitiveness within the highly competitive financial services industry.

Fitch also noted that Samsung Securities is strengthening its position in the investment banking (IB) sector, thereby diversifying its revenue streams. Attention was also drawn to the improved risk management capabilities, including significantly reducing risks related to real estate development projects this year.

Samsung Life Insurance, the major shareholder of Samsung Securities, was also one of the contributing factors to this credit rating upgrade. Samsung Life Insurance holds a 29.4% stake in Samsung Securities. Including 0.2% held by other affiliates within the group, Samsung Group holds a total of 29.6% of the shares. This has acted as a factor supporting Samsung Securities' market position in the financial services industry along with strong backing from Samsung Group.

A Samsung Securities representative stated, "This credit rating upgrade officially recognizes Samsung Securities' solid financial soundness and favorable profitability," adding, "We expect this to enhance trust among global investors and customers."