S&P assigns Hana Bank notes BBB+

Standard & Poor's said it assigned its BBB+ rating to Hana Bank's (A-/stable/A-2) proposed 10-year lower tier II subordinated notes noncallable for five years to be drawn down from a $2.5 billion global MTN program.

The rating differential between the counterparty rating on the bank and the lower Tier II subordinated notes is in line with S&P's practice of rating subordinated debt one notch below the long-term senior credit rating for issuers rated BBB- or above.

It also takes into consideration the terms and conditions of the proposed subordinated notes and the overall financial status of Hana, the agency said, noting that the rating on Hana reflects its sound asset quality and relatively adequate capitalization achieved over the past few years.

Constraining factors for the ratings include the bank's weak fee income and its relatively rapid asset growth during 2006, the agency said.

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