Moody's rates Korea Housing covered bonds Aa3

Moody's Investors Service said it assigned a provisional long-term rating of Aa3 to the covered bonds to be issued by Korea Housing Finance Corp.

The covered bonds will constitute direct, unconditional and unsubordinated general obligations of Korea Housing and will have a priority claim on a dynamic pool of mortgage loans secured by residential real estate in Korea.

This transaction is a single, stand-alone issuance of covered bonds by Korea Housing and is not part of an issuance program, the agency said.

The rating on the covered bonds considers the credit strength of the issuer. Korea Housing has an issuer rating of A1, Moody's said.

The rating also reflects that the covered bonds will be backed by residential mortgage loans originated by certain Korean financial institutions, along with a commitment by the issuer to maintain an asset percentage of 84.7%, which is an over-collateralization of about 18%, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.