NH Investment & Securities Co. Ltd. (NHSECS)

NH Investment & Securities’ current credit quality is strong among major Korean securities companies. The direction is modestly positive in the near term, supported by the FY2025 earnings recovery, capital strengthening, strong 1Q 2026 performance, and IMA approval. However, as a securities company it is sensitive to market and funding conditions. It is not an issuer whose credit profile changes slowly like a bank or quasi-sovereign, and the credit view could change relatively quickly if market stress intensifies.

The core support factors are its upper-tier domestic franchise, importance within the NH Financial Group / NACF group, the domestic AA+ rating confirmed by KIS, thick NCR, and strong FY2025 earnings. Because the company has several revenue sources across brokerage, WM, IB, and investment operations, it is more diversified than a securities company dependent on a single business. The parent’s capital increase showed that the group views the company as an important vehicle for its non-bank strategy and IMA business. These factors support the company’s access to Korean won bond and short-term funding markets. For foreign-currency bonds, S&P information is limited, so ratings, terms, and liquidity should be checked for each individual issue.

At the same time, the assessment is constrained by market-dependent earnings, balance-sheet expansion, funding structure, and risks associated with IB, alternative assets, and IMA. The earnings improvement in FY2025 and 1Q 2026 is strong, but stress resilience should not be judged from strong-market numbers alone. Given the scale of borrowings, deposit liabilities, bonds issued, and financial product liabilities, the funding profile cannot be viewed as fully comfortable without confirming detailed liquidity, foreign-currency funding, collateral headroom, short-term maturities, and derivative-related margin requirements.