S&P rates Kookmin Bank notes A-

Standard & Poor's said it assigned its A- rating to Kookmin Bank's (A-/stable/A-2) proposed senior unsecured notes to be drawn down from its $4 billion global MTN program.

"Kookmin has a leading market position in the Korean domestic banking market. With over 21% of total deposits in the sector, its lower funding costs enable the bank to maintain its net interest margin above 3.8%, surpassing the ratios of its domestic competitors," said S&P credit analyst JaeMin Kwon.

Kookmin's branch network, the largest in Korea, contributes to its adequate funding and liquidity, the agency added, noting that the bank's concentration risk to single obligors is limited because its loan portfolio is diversified and is comprised of relatively small loans to individual households and small to midsize enterprises.

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