Fitch affirms Hana

Fitch Ratings said it affirmed the ratings of Korea's Hana Bank, including the long-term foreign currency BBB+, individual B/C, support 2 and short-term foreign currency F2 ratings. The outlook is stable.

Fitch said the affirmation comes as Hana Bank confirmed that it has agreed to acquire a 100% stake in state-run Daehan Investment & Securities Co. for KRW475 billion.

The acquisition of DI&S will make Hana's asset management operations the biggest in South Korea, indicating that Hana's management sees a leading position in the asset management market as an important element in its business strategy, Fitch said.

Although, in the long-run, Fitch said it believes that this acquisition would be helpful to entrench Hana's market standing as competition with some global players and the larger domestic competitors intensifies, in the nearer-term it will be a challenge for the bank to integrate the acquisition with its existing management operations and to achieve synergies from the merger with its current banking business.

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