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[Alpha Biz=(Chicago) Reporter Paul Lee] Credit rating agencies simultaneously negatively diagnosed the outlook for the second half of the securities industry. Amid the continued risk of real estate project financing (PF), especially among small and medium-sized companies, the pace of real asset recovery has been delayed, raising concerns over large companies' insolvency of alternative assets overseas.
According to the credit rating industry on the 18th, the Korea Corporate Evaluation, the Korea Credit Rating, and the Nice Credit Rating assessed the second-half rating outlook of the securities industry as 'negative' and diagnosed the industry outlook as 'unfriendly'.
In particular, Korea Investors Service pointed out that monitoring is needed centering on securities firms with high exposure compared to their equity capital such as Mirae Asset, Hana, Meritz and Daeshin in the second half. Hi and Daol Investment & Securities were mentioned as companies that need intensive monitoring of real estate PF.
In fact, there are growing concerns that the insolvency of large securities firms in overseas real estate is becoming a reality. According to Korea Investors Service, the amount of overseas real estate exposure to equity capital is more than twice as large as 24% for large companies and 11% for small and medium-sized companies.
The failure of domestic financial institutions to invest in Hong Kong buildings is also raising tensions. Mirae Asset Securities loaned $ 243 million (about 280 billion won in exchange rate at that time) to the Goldin Financial Global Center (GFGC) building in Hong Kong in June 2019 with a mezzanine loan. It has delayed redemption for three years, but eventually decided to amortize 80-100% of the fund's assets, so the institutions that invested here are expected to lose around 90% of the principal.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
