View of Mirae Asset Securities headquarters building. Photo = Mirae Asset Securities provided

[Alpha Biz=(Chicago) Reporter Paul Lee] International credit rating agency S & P Global announced on the 8th (local time) that it has adjusted the credit rating outlook for Mirae Asset Securities and Korea Investment & Securities from 'stable' to 'negative'.

"Over the next year or two, real estate-related risks can be a burden on the asset soundness and profitability of Korean securities firms," S & P Global said. "Securities firms' profitability burden can continue for the next two years."

"Considering that real estate prices have risen significantly and are still high amid low interest rates over the past few years, it is unlikely that the government will actively boost the real estate market," S & P Global said. "Considering Korea's high household debt, the government will gradually focus on lowering the household debt-to-GDP ratio."

S & P Global pointed out that there is a high credit risk related to overseas alternative investment.

"The average return on assets (ROAA) of last year was about 0.3% (based on provisional performance), down from 1.0% in 2021 and 0.7% in 2022," said Mirae Asset Securities. "The accumulation of provisions related to domestic and foreign real estate exposure and recognition of impairment losses led to a drop in profitability."

 

[ⓒ AlphaBIZ. 무단전재-재배포 금지]