S&P gives Korea Housing notes AAA

S&P said it gave preliminary AAA ratings to the €1 billion of fixed-rate three-year social covered bonds to be issued by Korea Housing Finance Corp.

“Our preliminary rating is based upon our expectation that KHFC will commit to maintaining overcollateralization at a percentage that meets or exceeds our requirement for the two notches of collateral-based uplift. The covered bonds to be issued therefore can reach a AAA rating from a credit and cash-flow perspective. The available credit enhancement is 26.58%, as a percentage of the covered bond principal amount, based upon the applicable foreign-exchange rate and the cover pool as of Jan. 14, 2022, the pool cut-off date,” S&P said in a press release.

The outlook is stable.

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