Fitch cuts Kookmin Bank view to negative

Fitch Ratings said it affirmed Kookmin Bank's long-term foreign-currency issuer default rating at A+, and assigned a short-term issuer default rating of F1.

The outlook is revised to negative from stable due to the potential for a lowering of Kookmin's capital through a share buyback as part of its planned reorganization under a financial holding company, as well as some weakening in its operating environment, Fitch said.

The agency said it will constantly monitor the appropriateness of its negative outlook given the possibility that there is no reduction in capital at all.

But another factor behind the negative outlook is the weakening operating environment for commercial banks in Korea, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.