Top 3 Domestic Credit Rating Agencies, Hana F&I Credit Rating Upgraded from 'A0' to 'A+'

Positive Evaluation of Stable Profitability and Capital Adequacy

Hana F&I, a specialized company in non-performing loan (NPL) investments under Hana Financial Group, announced on the 26th that its credit rating, evaluated by Korea's top three credit rating agencies?NICE Credit Rating, Korea Credit Rating, and Korea Investors Service?has been upgraded from ‘A0’ to ‘A+’.

This achievement came about approximately 10 months after the credit rating outlook was upgraded from ‘A0 (Stable)’ to ‘A0 (Positive)’ when Hana F&I issued its 187th corporate bond at the end of January this year. The upgrade reflects high recognition of the company’s continuous expansion of market share based on stable profitability and capital adequacy.

In its report, NICE Credit Rating stated, “With the growth of the NPL market and the expansion of NPL investment assets, stable profitability is expected to be maintained,” and added, “Hana F&I has continuously improved its capital adequacy through paid-in capital increases from Hana Financial Group, and considering the recent trend of strengthening the group’s non-bank business sector, we have decided to upgrade the credit rating.”

Additionally, Korea Credit Rating forecasted improved earnings generation capability by considering the stabilization of Hana F&I’s NPL purchase price ratio and the declining trend in funding costs. Korea Investors Service cited reasons for the upgrade including Hana F&I’s top-tier market position within the NPL industry and the expectation that leverage ratios will be well managed, taking into account the group’s support potential.

Since its business transition to an NPL investment specialist, Hana F&I has steadily increased its investment assets while maintaining excellent capital adequacy based on paid-in capital increases by the major shareholder and solid profit performance. As of the end of September 2024, the leverage ratio was managed at a stable level of 5.1 times, significantly improved from 7.0 times in the same period last year.

A Hana F&I official explained, “With this credit rating upgrade, stable long-term funding and interest cost reduction have become possible,” and added, “We will further solidify our position as a leading NPL investment firm.”