Full Breakdown
Korea-U.S. Strategic Investment Corp. Receives Sovereign-Level Credit Ratings
By Drooid · · How we work
Sovereign-Level Ratings Assigned
The Korea-U.S. Strategic Investment Corporation announced that Moody’s assigned it a long-term rating of Aa2 and S&P Global Ratings assigned a long-term rating of AA, each with a stable outlook. Both agencies placed the corporation on par with the South Korean government, marking its first international credit assessment since the entity’s creation.
Institutional Background
Established under a special act, the Korea-U.S. Strategic Investment Corporation is a policy-finance institution tasked with executing strategic investment projects that link South Korea and the United States. The corporation is wholly owned by the South Korean government, which also provides oversight and supervision of its operations. Park Jong-won serves as the corporation’s president.
Rating Rationale
Moody’s and S&P cited the corporation’s “nationally significant policy role” and its full government ownership as primary factors for the sovereign-level ratings. The agencies highlighted the institution’s mandate to carry out projects of national importance and its close ties to the government as evidence of creditworthiness comparable to that of the South Korean state.
Implications for Funding
The corporation indicated that the ratings are intended to bolster its credibility in international financial markets and to lay the groundwork for stable funding. Specifically, the agency plans to issue Korea-U.S. strategic investment bonds, using the ratings to attract investors and support future cross-border projects.