The Financial Investment Association announced on June 9 that NICE Credit Rating Agency received the highest evaluation in its "2026 Credit Rating Agency Capability Assessment" conducted among three domestic credit rating agencies: Korea Corporate Rating, Korea Credit Rating, and NICE Credit Rating.
The assessment was divided into two categories: "Accuracy of Credit Ratings," which evaluates the accuracy of credit ratings, and "Stability of Credit Ratings and Usefulness of Predictive Indicators," which assesses the stability of ratings and the usefulness of predictive indicators such as rating outlooks and monitoring.
The evaluation combined quantitative assessments (50%) using metrics like default rates and rating maintenance rates with qualitative assessments (50%) based on surveys of market experts.
In the accuracy category, NICE Credit Rating received the highest scores in both quantitative and qualitative evaluations. According to the Financial Investment Association, there were no defaults among investment-grade companies last year, and NICE Credit Rating recorded the lowest average cumulative default rate and annual default rate.
In the qualitative assessment, NICE Credit Rating scored 3.89 out of 5, surpassing Korea Corporate Rating (3.80) and Korea Credit Rating (3.76).
NICE Credit Rating also ranked first in the overall evaluation for the stability of credit ratings and the usefulness of predictive indicators.
In the stability category, NICE Credit Rating received the highest ratings in both quantitative and qualitative evaluations. In the quantitative assessment of usefulness, Korea Corporate Rating and Korea Credit Rating achieved a 100% alignment rate between their rating outlooks and actual credit rating changes over the past three and five years. However, in the overall results, including qualitative assessments, NICE Credit Rating received the highest evaluation.
The overall trust in credit rating capabilities among market participants, including credit analysts and bond managers, remained steady at an average score of 3.82 out of 5, the same as last year.
However, satisfaction regarding stability slightly decreased compared to the previous year due to increased volatility in rating assessments.
In a separate survey regarding investor concerns, NICE Credit Rating was highly rated for the appropriateness and diversity of the information provided, market communication efforts, and overall market contribution. Conversely, Korea Corporate Rating received the highest score for the usefulness of its credit rating reports.
Kang Kyung-hoon, the evaluation committee chair, stated, "In the current situation of heightened external uncertainties due to global interest rate fluctuations and conflicts in the Middle East, it is crucial to protect investors through accurate information. I hope credit rating agencies contribute to the stability of the capital market by providing transparent and timely evaluations."
* This article has been translated by AI.
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