Seoul:Global credit rating agencies have assigned favorable ratings to the Korea-U.S. Strategic Investment Corporation (KUIC), a state-run entity responsible for implementing South Korea's $350 billion investment commitment to the United States. The ratings align with South Korea's sovereign ratings.
According to Yonhap News Agency, Moody's Ratings awarded KUIC an Aa2 issuer rating with a stable outlook, while S&P Global Ratings assigned it long-term credit ratings of AA. These are the first credit ratings KUIC has received since its establishment earlier this year.
Moody's Ratings indicated that KUIC's high rating is influenced by the Government of Korea's strong willingness and capability to offer timely support. This is due to the significant credit linkages between KUIC and the Korean government. The government's robust ability to support KUIC is supported by South Korea's ample financial reserves and strong creditworthiness, as demonstrated by its Aa2 rating.
S&P Global Ratings highlighted that its assessment of KUIC is based on its view of the institution's almost certain likelihood of obtaining timely and sufficient support from the Korean government during critical times. This perspective is rooted in KUIC's essential policy role and strong connection with the government, leading S&P to equalize its ratings on KUIC with Korea's sovereign rating.
KUIC stated that these ratings are expected to enhance its credibility in international financial markets and facilitate stable funding. The company was officially launched in June following the passage of the Special Act for Korea-U.S. Strategic Investment Management by the National Assembly in March.
The investment agreement between Seoul and Washington, reached in October of last year, involves South Korea's $350 billion pledge in exchange for reduced U.S. tariffs. This investment includes $150 billion for shipbuilding cooperation and $200 billion for projects in various strategic sectors.