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Photo = Homeplus |
[Alpha Biz= Paul Lee] Prosecutors have launched a raid on the credit rating agencies, Korea Investors Service (KIS) and Korea Ratings, which downgraded the credit rating of Homeplus in connection with the short-term bond incident.
According to legal sources on the 12th, the Seoul Central District Prosecutor's Office’s Anti-Corruption Investigation Division 3 (headed by Chief Prosecutor Lee Seung-hak) raided the offices of Korea Investors Service and Korea Ratings in Yeongdeungpo-gu, Seoul, earlier today.
On February 28, Korea Ratings and Korea Investors Service downgraded Homeplus's commercial paper and short-term bond credit rating from 'A3' to 'A3-'.
After the downgrade, Homeplus filed for corporate rehabilitation (court receivership) on March 4. Prosecutors suspect that Homeplus and its private equity partner, MBK Partners, were aware of the downgrade on February 25 — several days before the official downgrade — and issued bonds, thereby passing the losses on to investors.
Prosecutors are focusing on the possibility that Homeplus and MBK Partners' management were aware of the downgrade in advance, and despite that knowledge, they proceeded with issuing short-term bonds while planning the corporate rehabilitation filing. They are expected to examine the materials seized during the raid to determine if Korea Ratings and Korea Investors Service had previously warned Homeplus about the potential downgrade.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
