Korea Ratings Upgrades MG Capital Credit Rating to 'A/Stable'

On May 8, Korea Ratings announced that it had upgraded the unsecured bond credit rating of MG Capital from 'A-/Positive' to 'A/Stable'.

Korea Ratings cited several reasons for the upgrade following its regular and main evaluations on the same day. First, the agency pointed to the improvement in MG Capital's financial stability through a paid-in capital increase. In addition, it expects MG Capital's market position to expand in the future and anticipates a reduction in asset portfolio risk. Finally, Korea Ratings added that it forecasts improvements in financial indicators such as funding structure, liquidity management capability, and asset soundness.

The agency stated that it will closely monitor several factors going forward, including changes in MG Capital's market position, asset portfolio risk, profitability enhancement through improved earnings capacity, and management of financial stability indicators such as funding structure.