Rating of Bonds
Rating Definitions
| Rating | Definitions |
|---|---|
| AAA | Capacity for payment of financial commitments is exceptionally strong, and is so stable that it is unlikely to be affected by foreseeable future changes in circumstances |
| AA | Capacity for payment of financial commitments is very strong, and is unlikely to be affected by foreseeable future changes in circumstances |
| A | Capacity for payment of financial commitments is strong, but is more likely to be affected by future changes in circumstances than the higher ratings |
| BBB | Capacity for payment of financial commitments is adequate, but it may be weakened depending on future changes in circumstances |
| BB | Minimum capacity for payment of financial commitments is recognized, but there are speculative characteristics in terms of future stability |
| B | Capacity for payment of financial commitments is insufficient, and is highly speculative due to potential changes to stability |
| CCC | There is high likelihood of default |
| CC | There is very high likelihood of default |
| C | There is extremely high likelihood of default, and occurrence of default is inevitable within the reasonable range of prediction |
| D | In default at present |
- The ratings from 'AA' to 'B' may be modified by the addition of a plus(+) or minus(-) sign to show relative standing within the major rating categories.
Rating Outlook
| Rating Outlook | Definitions |
|---|---|
| Stable | The rating is unlikely to change over the next 1~2 years |
| Positive | The rating may be upgraded over the next 1~2 years |
| Negative | The rating may be downgraded over the next 1~2 years |
| Evolving | The rating may be upgraded, downgraded or affirmed over the next 1~2 years and therefore, the direction of rating change is uncertain |
| None | Ratings in the ‘C’ and ‘D’ category or entities placed on Rating Watch do not carry a Rating Outlook |
- Note 1: Rating Outlook indicates the direction a rating is likely to move over a one- to two-year period as of the rating date. It is a non-rating symbol that is irrelevant to KR’s rating scale.
- Note 2: Rating Outlook is not a precursor of a rating change and thus does not necessarily accompany a rating change. In other words, the rating change may not follow the Rating Outlook.
Rating Watch
| Rating Watch | Sign | Definitions |
|---|---|---|
| Positive Review | ↑ | An event which has positive impact on the rating is expected to occur |
| Evolving | ◇ | An event that may drive a rating change is expected, yet it needs to be monitored gradually whether the impact is positive or negative |
| Negative Review | ↓ | An event which has negative impact on the rating is expected to occur |
- Note 1: Rating Watch indicates the direction a rating is likely to move over maximum three months as of the rating date. It is a non-rating symbol that is irrelevant to KR’s rating scale.
- Note 2: Rating Watch is not a precursor of a rating change and thus does not necessarily accompany a rating change. In other words, the rating change may not follow the Rating Watch.
Rating of Commercial Papers
Rating Definitions
| Rating | Definitions |
|---|---|
| A1 | Capacity for payment of short-term financial commitments is very strong, and is unlikely to be affected by foreseeable future changes in circumstances |
| A2 | Capacity for payment of short-term financial commitments is strong, but is more likely to be affected future changes in circumstances than the higher rating |
| A3 | Capacity for payment of short-term financial commitments is adequate, but it may be weakened depending on future changes in circumstances |
| B | Minimum capacity for payment of short-term financial commitments is recognized, but is speculative due to potential changes to stability |
| C | Capacity for payment of short-term financial commitments is doubtful and the likelihood of default is high |
| D | In default at present |
- The ratings from 'A2' to 'B' may be modified by the addition of a plus(+) or minus(-) sign to show relative standing within the major rating categories.
Rating Watch
| Rating Watch | Sign | Definitions |
|---|---|---|
| Positive Review | ↑ | An event which has positive impact on the rating is expected to occur |
| Evolving | ◇ | An event that may drive a rating change is expected, yet it needs to be monitored gradually whether the impact is positive or negative |
| Negative Review | ↓ | An event which has negative impact on the rating is expected to occur |
- Note 1: Rating Watch indicates the direction a rating is likely to move over maximum three months as of the rating date. It is a non-rating symbol that is irrelevant to KR’s rating scale.
- Note 2: Rating Watch is not a precursor of a rating change and thus does not necessarily accompany a rating change. In other words, the rating change may not follow the Rating Watch.
Issuer Credit Rating
Rating Definitions
| Rating | Definitions |
|---|---|
| AAA | Capacity for payment of financial commitments is exceptionally strong, and is so stable that it is unlikely to be affected by foreseeable future changes in circumstances |
| AA | Capacity for payment of financial commitments is very strong, and is unlikely to be affected by foreseeable future changes in circumstances |
| A | Capacity for payment of financial commitments is strong, but is more likely to be affected by future changes in circumstances than the higher ratings |
| BBB | Capacity for payment of financial commitments is adequate, but it may be weakened depending on future changes in circumstances |
| BB | Minimum capacity for payment of financial commitments is recognized, but there are speculative characteristics in terms of future stability |
| B | Capacity for payment of financial commitments is insufficient, and is highly speculative due to potential changes to stability |
| CCC | There is high likelihood of default |
| CC | There is very high likelihood of default |
| C | There is extremely high likelihood of default, and occurrence of default is inevitable within the reasonable range of prediction |
| D | In default at present |
- The ratings from 'AA' to 'B' may be modified by the addition of a plus(+) or minus(-) sign to show relative standing within the major rating categories.
Rating Outlook
| Rating Outlook | Definitions |
|---|---|
| Stable | The rating is unlikely to change over the next 1~2 years |
| Positive | The rating may be upgraded over the next 1~2 years |
| Negative | The rating may be downgraded over the next 1~2 years |
| Evolving | The rating may be upgraded, downgraded or affirmed over the next 1~2 years and therefore, the direction of rating change is uncertain |
| None | Ratings in the ‘C’ and ‘D’ category or entities placed on Rating Watch do not carry a Rating Outlook |
- Note 1: Rating Outlook indicates the direction a rating is likely to move over a one- to two-year period as of the rating date. It is a non-rating symbol that is irrelevant to KR’s rating scale.
- Note 2: Rating Outlook is not a precursor of a rating change and thus does not necessarily accompany a rating change. In other words, the rating change may not follow the Rating Outlook.
Rating Watch
| Rating Watch | Sign | Definitions |
|---|---|---|
| Positive Review | ↑ | An event which has positive impact on the rating is expected to occur |
| Evolving | ◇ | An event that may drive a rating change is expected, yet it needs to be monitored gradually whether the impact is positive or negative |
| Negative Review | ↓ | An event which has negative impact on the rating is expected to occur |
- Note 1: Rating Watch indicates the direction a rating is likely to move over maximum three months as of the rating date. It is a non-rating symbol that is irrelevant to KR’s rating scale.
- Note 2: Rating Watch is not a precursor of a rating change and thus does not necessarily accompany a rating change. In other words, the rating change may not follow the Rating Watch.
Insurer Financial Strength Rating
Rating Definitions
| Rating | Definitions |
|---|---|
| AAA | Capacity for payment of financial commitments is exceptionally strong, and is so stable that it is unlikely to be affected by foreseeable future changes in circumstances |
| AA | Capacity for payment of financial commitments is very strong, and is unlikely to be affected by foreseeable future changes in circumstances |
| A | Capacity for payment of financial commitments is strong, but is more likely to be affected by future changes in circumstances than the higher ratings |
| BBB | Capacity for payment of financial commitments is adequate, but it may be weakened depending on future changes in circumstances |
| BB | Minimum capacity for payment of financial commitments is recognized, but there are speculative characteristics in terms of future stability |
| B | Capacity for payment of financial commitments is insufficient, and is highly speculative due to potential changes to stability |
| CCC | There is high likelihood of default |
| CC | There is very high likelihood of default |
| C | There is extremely high likelihood of default, and occurrence of default is inevitable within the reasonable range of prediction |
| D | In default at present |
- The ratings from 'AA' to 'B' may be modified by the addition of a plus(+) or minus(-) sign to show relative standing within the major rating categories.
Rating Outlook
| Rating Outlook | Definitions |
|---|---|
| Stable | The rating is unlikely to change over the next 1~2 years |
| Positive | The rating may be upgraded over the next 1~2 years |
| Negative | The rating may be downgraded over the next 1~2 years |
| Evolving | The rating may be upgraded, downgraded or affirmed over the next 1~2 years and therefore, the direction of rating change is uncertain |
| None | Ratings in the ‘C’ and ‘D’ category or entities placed on Rating Watch do not carry a Rating Outlook |
- Note 1: Rating Outlook indicates the direction a rating is likely to move over a one- to two-year period as of the rating date. It is a non-rating symbol that is irrelevant to KR’s rating scale.
- Note 2: Rating Outlook is not a precursor of a rating change and thus does not necessarily accompany a rating change. In other words, the rating change may not follow the Rating Outlook.
Rating Watch
| Rating Watch | Sign | Definitions |
|---|---|---|
| Positive Review | ↑ | An event which has positive impact on the rating is expected to occur |
| Evolving | ◇ | An event that may drive a rating change is expected, yet it needs to be monitored gradually whether the impact is positive or negative |
| Negative Review | ↓ | An event which has negative impact on the rating is expected to occur |
- Note 1: Rating Watch indicates the direction a rating is likely to move over maximum three months as of the rating date. It is a non-rating symbol that is irrelevant to KR’s rating scale.
- Note 2: Rating Watch is not a precursor of a rating change and thus does not necessarily accompany a rating change. In other words, the rating change may not follow the Rating Watch.