NH Investment & Securities' (KRX:005940) sufficient capital will anchor growth in corporate financing, especially with its investment management account (IMA) segment gaining regulatory consent, S&P Global Ratings said in a recent release.

The expansion adheres to parent NongHyup Financial Group's pivot to the corporate segment in line with the Korean government's economic growth efforts, S&P said.

The parent group is strongly committed to extend support to the subsidiary in case of need, the rating agency said.

The company's risk-adjusted capital ratio will drop to about 8.7% over the next two years from an estimated 9.5% in 2025, given growth in risky equities or funds following the IMA adoption, S&P said.

However, the figure remains above the 7% threshold for adequate capital and earnings assessment, with S&P expecting the ratio to remain at about 7.3% even with IMA funding reaching up to 100% of shareholders' equity.

The company's diversified business structure across several segments and group support for funding and liquidity should boost its resilience amid headwinds for securities firms due to the Middle East war, according to S&P.

Narrower direct exposure to private credit and more robust earnings capacity compared to peers also serve as strengths, S&P said.