S&P rates Korea Housing notes AAA

S&P said it assigned its AAA rating to the €550 million of seven-year fixed-rate social covered bonds issued by Korea Housing Finance Corp.

“KHFC has committed to maintain overcollateralization at 6%. This exceeds our requirement for the two notches of collateral-based uplift. The covered bonds issued therefore can reach an AAA rating from a credit and cash-flow perspective. The available credit enhancement is 22.26%, as a percentage of the covered bond principal amount, based upon the applicable foreign exchange rate and the cover pool as of Sept. 7, 2021, the pool cut-off date,” S&P said in a press release.

The outlook is stable.

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