S&P gives Kookmin Bank notes BBB-

S&P said it assigned its BBB- long-term foreign currency issue rating to Kookmin Bank's (A+/stable/A-1) proposed U.S. dollar-denominated Basel III tier 1 subordinated notes.

The subordinated notes are intended to be Basel III tier 1 regulatory capital for Kookmin.

“The BBB- rating is three notches below Kookmin's a- stand-alone credit profile (SACP). One notch reflects our downward assessment for the risk related to subordination, and the other two notches reflect our downward assessment for the risk of dividend nonpayment for a tier 1 instrument,” S&P said in a news release.

“We believe our SACP assessment also captures any incremental risks related to dividend nonpayment via legally available reserves if and when the bank does not meet certain minimum regulatory capital ratios.”

© 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.