Moody's: Korean banks view cut to negative

Moody's Investors Service said it changed the outlook on the C bank financial strength rating of the big four Korean nationwide banks - Kookmin Bank, Woori Bank, Shinhan Bank and Hana Bank - to negative from stable. Their debt and deposit ratings are unaffected and carry a stable outlook.

The action reflects the anticipated deterioration in the creditworthiness of the banks due to intensifying stresses from the global credit crisis and weaker domestic economy, Moody's said.

The cushion in the current rating range is insufficient to cover such additional pressures and their eventual impact on the financial fundamentals of the banks, the agency said.

However, the credit ratings of the four banks are unlikely to be affected by any bank financial strength ratings as Korea falls under the 'high' country support guideline, the agency said.

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