Research Update: Korea Housing Finance Corp. Assigned 'AA/A-1+' Ratings; Outlook Stable

We believe Korea Housing Finance Corp. (KHFC) executes critical public roles of providing long-term fixed-rate mortgage loans, mainly through issuance of residential mortgage-backed securities (RMBS), and maintains an integral link with the government. We expect KHFC to have an almost certain likelihood of extraordinary government support in the event of financial distress. In turn, we equalize the ratings on KHFC with those on the sovereign. We are assigning our 'AA' long-term and 'A-1+' short-term issuer credit ratings to KHFC. The stable outlook reflects the outlook on the Republic of Korea. On May 17, 2019, S&P Global Ratings assigned its 'AA' long-term and 'A-1+' short-term issuer credit ratings to KHFC, a Korea-based housing finance agency. The outlook on the long-term rating

...- We believe Korea Housing Finance Corp. (KHFC) executes critical public roles of providing long-term fixed-rate mortgage loans, mainly through issuance of residential mortgage-backed securities (RMBS), and maintains an integral link with the government. - We expect KHFC to have an almost certain likelihood of extraordinary government support in the event of financial distress. In turn, we equalize the ratings on KHFC with those on the sovereign. - We are assigning our '##' long-term and 'A-1+' short-term issuer credit ratings to KHFC. - The stable outlook reflects the outlook on the Republic of Korea....

Research Update