Almost certain likelihood of support from the Korean government Strong market position in residential mortgage backed securities (RMBS) and long-term fixed-rate mortgage loan markets Relatively sound asset quality Relatively low profitability High business concentration due to legal restrictions Exposure to interest rate risk Our ratings on Korea Housing Finance Corp. (KHFC: foreign currency A+/Stable/A-1; local currency AA-/Stable/A-1+) reflect our opinion that there is an "almost certain" likelihood of timely and sufficient extraordinary support from the government of Korea (foreign currency rating A+/Stable/A-1; local currency rating AA-/Stable/A-1+) in the event of financial distress. KHFC's stand-alone credit characteristics include its strong market position in RMBS and long-term fixed-rate mortgage loan markets, and relatively strong asset quality. On the other hand, they also
