Fitch rates Heungkuk Life debt BBB-

Fitch Ratings said it assigned Heungkuk Life Insurance Co., Ltd. an insurer financial strength rating of BBB+ and long-term issuer default rating of BBB.

The outlooks are stable.

Additionally, the agency assigned an expected rating of BBB-(EXP) to the company’s proposed $500 million subordinated securities.

The proposed securities will be Heungkuk Life’s direct, unsecured and subordinated obligations.

Net proceeds will be used for general corporate purposes.

Fitch said the ratings take into consideration Heungkuk Life’s good business profile, moderately weak capitalization and good financial performance. It also reflects ongoing challenges the company faces, particularly in improving its capital adequacy amid a tightening regulatory environment and mitigation of the negative burden that stems from its legacy policy obligations with high guarantee rates, the agency explained.

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