Moody's raises outlook on Mirae Asset Securities to stable

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Moody's raises outlook on Mirae Asset Securities to stable

Published: 11 May. 2021, 17:23 Updated: 11 May. 2021, 17:58

The Mirae Asset headquarters in central Seoul [MIRAE ASSET DAEWOO]

Moody’s Investors Service on Tuesday raised the outlook on Mirae Asset Securities to stable from negative, while keeping the brokerage firm’s credit rating at Baa2.

“The change in the securities firm’s outlook to stable from negative takes into account Moody’s expectation of slower risk asset growth as a result of various prudential regulatory measures implemented by the Korean Financial Supervisory Service and Financial Services Commission,” Moody’s said on Tuesday. “The securities firm’s risk appetite, leverage and funding will improve because of its plans to reduce the balances of equity-linked securities, contingent liabilities such as guarantees, and exposures to real-estate properties and project.”

Moody’s added that “the operating environment in Korea could also lead to a downgrade of Mirae Asset Securities’ ratings.”

In the first quarter, Mirae Asset Securities reported 296.8 billion won ($265 million) in net profit, up 177.1 percent on year. Sales were down 47.6 percent during the same period to 4.76 trillion won.

BY JIN MIN-JI [jin.minji@joongang.co.kr]