Moody's raises ratings for 15 Korean financial institutions
Action follows sovereign rating upgrade
Singapore, July 25, 2007 -- Moody's Investors Service has upgraded the ratings of 15 Korean institutions: Citibank Korea Inc, Daegu Bank, Hana Bank, Industrial Bank of Korea, Jeonbuk Bank, Kookmin Bank, Korea Development Bank, Korea Exchange Bank, Korea Rail Network Authority, National Agricultural Cooperative Federation, Pusan Bank, Shinhan Bank, Standard Chartered First Bank Korea Limited, Suhyup Bank and Woori Bank.
The bank financial strength (BFSR) and global local currency deposit ratings of these banks are unaffected. The Korea Development Bank's and Export-Import Bank of Korea's Aa3 foreign currency senior debt rating is confirmed, thereby concluding the reviews for possible upgrade initiated on July 3, 2007. Finally, Woori Finance Holdings' unconstrained A2 issuer rating is unaffected. The revised ratings are detailed below.
This rating action is in line with the changes in Korea's ratings on July 25, 2007: the government's long-term foreign currency and local currency was raised to A2 from A3; the country ceiling for foreign currency bonds to Aa3 from A1; and the foreign currency long-term/short term bank deposit to A2/Prime-1 from A3/Prime-2. See press release of July 25, 2007, for greater discussion on sovereign issues.
The detailed changes and ratings are:
Citibank Korea Inc -- Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency subordinated debt rating of A1, global local currency deposit rating of Aa3 and BFSR of C- are unaffected. All ratings carry a stable outlook.
Daegu Bank - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The global local currency deposit rating of A2 and BFSR of C- are unaffected. All ratings carry a stable outlook.
Export-Import Bank of Korea -- Foreign currency senior debt rating of Aa3 is confirmed, concluding a review for possible upgrade initiated on July 3, 2007. The rating carries a stable outlook.
Hana Bank - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency senior/subordinated debt ratings of A1/A2, global local currency deposit rating of A1 and BFSR of C are unaffected. All ratings carry a stable outlook.
Industrial Bank of Korea - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2 and the foreign currency senior/subordinated debt ratings to Aa3/Aa3 from A1/A1. The BFSR of D+ is unaffected. All ratings carry a stable outlook.
Jeonbuk Bank - Foreign currency short-term deposit rating is raised to Prime-1 from Prime-2. The rating carries a stable outlook.
Kookmin Bank - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2 and the foreign currency senior debt rating to Aa3 from A1. The foreign currency subordinated debt rating of A1, global local currency deposit rating of Aa3 and BFSR of C are unaffected. All ratings carry a stable outlook.
Korea Development Bank - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency senior debt rating of Aa3 is confirmed, concluding a review for possible upgrade initiated on July 3, 2007. All ratings carry a stable outlook.
Korea Exchange Bank - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency senior/subordinated debt ratings of A2/A3, global local currency deposit rating of A2 and BFSR of C- are unaffected. All ratings carry a stable outlook.
Korea Rail Network Authority -- The issuer rating is raised to A2 from A3. The rating carries a stable outlook.
National Agricultural Cooperative Federation - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency senior/subordinated debt ratings of A1/A2 and BFSR of D+ are unaffected. All ratings carry a stable outlook.
Pusan Bank - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency subordinated debt ratings of A3, global local currency deposit rating of A2 and BFSR of C- are unaffected. All ratings carry a stable outlook.
Shinhan Bank - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency senior/subordinated/Hybrid Tier 1 debt ratings of A1/A2/A3 and BFSR of C are unaffected. All ratings carry a stable outlook.
Standard Chartered First Bank Korea Limited - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency senior/subordinated debt ratings of A2/A3, global local currency deposit rating of A2 and BFSR of D+ are unaffected. All ratings carry a stable outlook except for the BFSR which carries a positive outlook.
Suhyup Bank -- Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency senior/subordinated debt ratings of A2/A3 and BFSR of D- are unaffected. All ratings carry a stable outlook.
Woori Bank - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency senior/subordinated/Hybrid Tier 1 debt ratings of A1/A2/A3 and BFSR of C are unaffected. All ratings carry a stable outlook.
Action follows sovereign rating upgrade
Singapore, July 25, 2007 -- Moody's Investors Service has upgraded the ratings of 15 Korean institutions: Citibank Korea Inc, Daegu Bank, Hana Bank, Industrial Bank of Korea, Jeonbuk Bank, Kookmin Bank, Korea Development Bank, Korea Exchange Bank, Korea Rail Network Authority, National Agricultural Cooperative Federation, Pusan Bank, Shinhan Bank, Standard Chartered First Bank Korea Limited, Suhyup Bank and Woori Bank.
The bank financial strength (BFSR) and global local currency deposit ratings of these banks are unaffected. The Korea Development Bank's and Export-Import Bank of Korea's Aa3 foreign currency senior debt rating is confirmed, thereby concluding the reviews for possible upgrade initiated on July 3, 2007. Finally, Woori Finance Holdings' unconstrained A2 issuer rating is unaffected. The revised ratings are detailed below.
This rating action is in line with the changes in Korea's ratings on July 25, 2007: the government's long-term foreign currency and local currency was raised to A2 from A3; the country ceiling for foreign currency bonds to Aa3 from A1; and the foreign currency long-term/short term bank deposit to A2/Prime-1 from A3/Prime-2. See press release of July 25, 2007, for greater discussion on sovereign issues.
The detailed changes and ratings are:
Citibank Korea Inc -- Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency subordinated debt rating of A1, global local currency deposit rating of Aa3 and BFSR of C- are unaffected. All ratings carry a stable outlook.
Daegu Bank - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The global local currency deposit rating of A2 and BFSR of C- are unaffected. All ratings carry a stable outlook.
Export-Import Bank of Korea -- Foreign currency senior debt rating of Aa3 is confirmed, concluding a review for possible upgrade initiated on July 3, 2007. The rating carries a stable outlook.
Hana Bank - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency senior/subordinated debt ratings of A1/A2, global local currency deposit rating of A1 and BFSR of C are unaffected. All ratings carry a stable outlook.
Industrial Bank of Korea - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2 and the foreign currency senior/subordinated debt ratings to Aa3/Aa3 from A1/A1. The BFSR of D+ is unaffected. All ratings carry a stable outlook.
Jeonbuk Bank - Foreign currency short-term deposit rating is raised to Prime-1 from Prime-2. The rating carries a stable outlook.
Kookmin Bank - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2 and the foreign currency senior debt rating to Aa3 from A1. The foreign currency subordinated debt rating of A1, global local currency deposit rating of Aa3 and BFSR of C are unaffected. All ratings carry a stable outlook.
Korea Development Bank - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency senior debt rating of Aa3 is confirmed, concluding a review for possible upgrade initiated on July 3, 2007. All ratings carry a stable outlook.
Korea Exchange Bank - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency senior/subordinated debt ratings of A2/A3, global local currency deposit rating of A2 and BFSR of C- are unaffected. All ratings carry a stable outlook.
Korea Rail Network Authority -- The issuer rating is raised to A2 from A3. The rating carries a stable outlook.
National Agricultural Cooperative Federation - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency senior/subordinated debt ratings of A1/A2 and BFSR of D+ are unaffected. All ratings carry a stable outlook.
Pusan Bank - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency subordinated debt ratings of A3, global local currency deposit rating of A2 and BFSR of C- are unaffected. All ratings carry a stable outlook.
Shinhan Bank - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency senior/subordinated/Hybrid Tier 1 debt ratings of A1/A2/A3 and BFSR of C are unaffected. All ratings carry a stable outlook.
Standard Chartered First Bank Korea Limited - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency senior/subordinated debt ratings of A2/A3, global local currency deposit rating of A2 and BFSR of D+ are unaffected. All ratings carry a stable outlook except for the BFSR which carries a positive outlook.
Suhyup Bank -- Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency senior/subordinated debt ratings of A2/A3 and BFSR of D- are unaffected. All ratings carry a stable outlook.
Woori Bank - Foreign currency long-term/short-term deposit ratings are raised to A2/Prime-1 from A3/Prime-2. The foreign currency senior/subordinated/Hybrid Tier 1 debt ratings of A1/A2/A3 and BFSR of C are unaffected. All ratings carry a stable outlook.
