Moody's: Korean banks ratings stable

Moody's Investors Service said the pace of rating upgrades for Korean banks is likely to moderate, while the industry has also largely avoided the recent fallout in the global credit markets.

The weighted average bank financial strength rating of 14 rated Korean banks rose to C- from D in May when Moody's implemented its bank financial strength ratings and refined Joint Default Analysis methodologies.

The higher ratings reflect the underlying stronger creditworthiness of the banks so the rating action was a function of timing rather than a methodology change, Moody's said in an annual report on the Korean banking industry.

In view of this rating level and Moody's outlook for the Korean banking system in the near term, the pace of further upgrades is likely to moderate, the agency said. Moody's also said it maintains some cushion in its ratings, given the big event risk nature of the Korean market.

© 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.