There are 6 rating categories from A1 to D for CP ratings. While obligors within rating categories from A1 to A3 are considered investment-graded having more than adequate capacity to timely meet their financial commitments, those within rating categories from B to C are considered to contain speculative characteristics in their redemption stability. Obligors in D category are in default.
There are 10 rating categories from AAA to D for bond ratings. While obligors within rating categories from AAA to BBB are considered investment-graded having more than adequate abilities to timely meet their financial commitments, those within rating categories from BB to C are considered to contain speculative characteristics in their future redemption stability. Obligors in D category are in default.
- Ratings may be assigned to unissued debentures.
- Issuer Name(SB) refers to the rating assigned to the issuer's Subordinate Bond.
- Bond ratings in parenthesis refer to the ratings of issuers' redemption capabilities without financial support from
their group affiliates.
Issuer Rating uses the same rating scale and rating definitions as unsecured corporate bond rating. The scale is composed of 10 broad rating categories from AAA to D that indicate different levels of debt service ability. AAA through BBB ratings are classified as investment grade, which indicates adequate debt service ability, whereas BB through C ratings are classified as speculative grade, which indicates substantial vulnerability to changes in the external environment.
Structure finance rating use the same rating scale as corporate bond rating or CP rating depending on the type of security issued. Use of same rating scales as corporate bond rating or CP rating facilitates investors’ understanding of credit risk associated with structure finance securities.
On November 1,1998,KIS intorduced the Watchlist Registration System to domestic financial markets in order to more timely meet the changes in rapidly moving business environments. To help investors in their own investment decisions, we publicly announce that KIS has set out to review possible changes in the issuer's current rating whenever changeability of its credit status is perceived.
- Review for Possible Upgarde (PU) : When a probable cause for upgrade of a rating occurs
- Review for Possible Downgrade (PD) : When a probable cause for downgrade of a rating occurs
- Review with Direction Uncertain(Unc.) : When possible direction of a rating adjustment is uncertain
On Semtember 1, 2002, KIS intorduced Rating Outlook System in order to provide more information to financial market. Based on this system, we publicly announce mid or long term(6 to 18 months) outlook on principal rating factors that can affect credit worthiness of each bond.
We give rating outlook to our current rating on each bond additionally. It does not mean actual change of credit rating and its rating can be changed differently from rating outlook.
Rating Outlook is true of only long term debentures including bond(exception : commercial paper, ABS, other debts on default, work-out, and restructuring), meanwhile for such bond registered by Watchlist, we do not give rating outlook.
