- Ratings Service
- Fund Ratings
Fund Credit Ratings are opinions of the overall credit quality of funds and similar investment vehicles which principally invest in fixed income obligations. The credit quality of the fund is similar to that of a similarly rated fixed-income instrument. The ratings are not intended to consider the prospective performance of a fund with respect to appreciation, volatility of net asset value, or yield.
Fund Market Risk Ratings are opinions of the relative degree of volatility of a rated fund’s net asset value. The ratings are not intended to consider the prospective performance of a fund with respect to appreciation, or yield.
Rating Scale and Definitions for Fund Credit Ratings
| AAA | Funds rated AAA are considered to have the best credit quality similar to AAA-rated fixed income obligations |
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| AA | Funds rated AA are considered to have high credit quality similar to AA-rated fixed income obligations |
| A | Funds rated A are considered to have moderate to high credit quality similar to A-rated fixed income obligations |
| BBB | Funds rated BBB are considered to have moderate credit quality similar to BBB-rated fixed income obligations |
| BB | Funds rated BB are considered to have slightly speculative credit quality similar to BB-rated fixed income obligations |
| B | Funds rated B are considered to have speculative credit quality similar to B-rated fixed income obligations |
| CCC | Funds rated CCC are considered to have low credit quality similar to CCC-rated fixed income obligations |
| CC | Funds rated CC are considered to have very speculative credit quality similar to CC-rated fixed income obligations |
| C | Funds rated C are considered to have the lowest credit quality similar to C-rated fixed income obligations |
※ The ratings from 'AA' to 'B' may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.
Rating Scale and Definitions for Fund Market Risk Ratings
| MR1 | Funds rated MR1 are judged to have very low sensitivity to changing interest rates and other market conditions |
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| MR2 | Funds rated MR2 are judged to have low sensitivity to changing interest rates and other market conditions |
| MR3 | Funds rated MR3 are judged to have moderate sensitivity to changing interest rates and other market conditions |
| MR4 | Funds rated MR4 are judged to have high sensitivity to changing interest rates and other market conditions |
| MR5 | Funds rated MR5 are judged to have very high sensitivity to changing interest rates and other market conditions |
Korea Investors Service introduced Watchlist system on November 1, 1998, which was the first among Korean credit rating agencies. Watchlist is used to indicate that a rating is placed under review for possible change to incorporate changes in factors that affect the issuer’s credit quality.
Global rating agencies, including Moody’s Investors Service, have used the Watchlist as an important part of their ratings processs to meet investors’ needs for timely rating updates.
A rating may be put on KIS Watchlist for possible upgrade, downgrade, or occasionally with direction uncertain along with the rationale behind such Watchlist placements in order to provide investors with an indication of the likely direction.
- Possible Upgrade : When there are factors that warrant potential rating upgrade
- Possible Downgrade : When there factors that warrant potential rating downgrade
- Direction Uncertain : When there are factors that warrant potential rating change but the direction is unclear
