[Edaily Reporter Kim Kyung-eun] On the 17th, #Hanyang Securities is falling sharply in early trading.
According to MP Doctor, as of 9:23 a.m. today, Hanyang Securities is trading at 19,810 won, down 2,890 won (12.73%) from the previous trading day, while Hanyang Securities Preferred Stock is trading at 20,350 won, down 3,500 won (14.68%).
This is believed to be the result of deteriorating investor sentiment following an analysis indicating that the company has significant credit exposure to affiliates of the JoongAng Ilbo group, which have filed for rehabilitation proceedings.
According to NICE Credit Rating, Hanyang Securities’ exposure to the JoongAng Ilbo group totals 84 billion won, including 54 billion won to JTBC and 30 billion won to JoongAng Ilbo. This exceeds the thresholds of 0.5% of total assets and 2.0% of capital.
Shin Seung-hwan, a senior researcher at NICE Credit Rating, stated, “Given the company’s equity capital of 6478억 won at the end of the first quarter, there is a quantitative burden associated with the exposure to the JoongAng Ilbo group,” adding, “We expect a deterioration in the credit quality of JTBC bonds—which has filed for rehabilitation—and an increased burden of setting aside provisions.”
However, he noted that since collateral has been established for these exposures, this could partially mitigate the negative impact on the bank’s credit rating. Researcher Shin stated, “We plan to closely monitor the cash-generating capacity of the collateralized assets and the recovery rate of the related bonds going forward,” adding, “If bond recoveries are significantly delayed or the actual scale of losses expands, this could act as a negative factor for the credit rating.”