Korea Ratings' credit ratings do not reflect the potential liquidity risk. "

[Korea financial newspaper goyounghun News] Korea Ratings is a risk assessment based on the unforeseen liquidity even grade fluctuation factors (Rating Trigger) This occurs because the evaluation factor for the predicted economic indicators do not reflect the current credit rating to potential liquidity risk He said it would.

Korea Ratings has held over the past 16 days the first quarter of 2017 Ombudsman meetings. The meeting took place in a discussion of the Rating Trigger liquidity risks related to credit rating reflects the mechanism, the rating change scenarios suggest the need, self-disclosure creditworthiness way.

If this place has become probable Rating Trigger occurs, such as Eland family and Daewoo Engineering and Construction practices took place a discussion of how they reflect the future potential liquidity risk in credit ratings. Following administration, it is important to avoid Rating Trigger is set to a high level of realization of the potential liquidity risk, and agreed that the two institutions to improve transparency for bonds riders relevant information needed

If a major credit event occurs, the opinion suggests that the need to provide information about the estimated grade control width for each scenario.

Criteria room songtaejun implementation "Given the controversial choice for the appropriateness of the scenarios, it is difficult to generalize evaluation policy," he said "However, the opinion that the introduction of case of possible scenarios analyzed by industrial structural factors industries need me Investors He explained it would be an important alternative to the protection and market stability. "



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Moody's "increased household debt, negative credit ratings on Korea"

[Korea Jeongseon financial newspaper reporters - International credit rating agency Moody's said that 27 days' growth while South Korea's household debt is negative for sovereign credit.

Moody's, the downside risks to the growth in consumption and increase vulnerability to soaring household debt has reduced incomes and rising interest rates, the day view from your credit report, he said.

Moody's has analyzed that "Korea's household debt is rising while dwaetjiman mortgage loans increased and accelerated after 2014, there was no corresponding rise in the value of assets.

Following Moody's explained that "60% of mortgages are variable rate loans then there are exposed to interest rate risk.

Before July 21, Moody's sovereign credit rating of Korea to 'Aa2', rating outlook is reaffirmed in the bar 'stable'.

Meanwhile, according to the Bank of Korea, the end of last year, household credit balances surged 141.2 trillion won (11.7%) than in 1344 tighten the end of 2015 300 billion won (1203 1000 1 trillion won). This amounts to 83% of gross domestic product (GDP).

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