Fitch rates Kookmim Bank notes A

Fitch Ratings said it assigned Kookmin Bank's (A/stable) planned senior floating-rate note an expected rating of A.

Kookmin's ratings reflect its established franchise and status as the largest deposit-taking institution in the Republic of Korea, the agency said.

In 2004, Kookmin's profits suffered heavily from severe pressure resulting from the household debt hangover in Korea, including the country's severe credit-card problems. This year, the bank has shown a significant recovery in its bottom line due mainly to the turnaround in its credit-card business, resulting in much lower provision charges, the agency said.

Fitch notes that despite concerns over SME lending - which accounted for 25.6% of its loan book at September 2005 - the delinquency ratio is improving. The bank's ratio of nonperforming to performing loans had fallen to 1.98% at September 2005 from 2.64% at the end of 2004 and 3.59% at September 2004.

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