Moody's cuts Korea Development Bank outlook to negative

Moody's Investors Service said it changed to negative from stable the outlook of Korea Development Bank's Aa3 long-term foreign currency debt rating, Aa1 long-term local currency deposit rating and A2 long-term foreign currency deposit rating.

At the same time, its D bank financial strength rating and P-1 short-term foreign currency debt rating, local currency deposit rating and foreign currency deposit rating are unchanged, the agency said.

"The negative outlook reflects Moody's concerns that Korea Development Bank's proposed privatization could significantly reduce those key support factors on which we have based the probability of government support and which have been incorporated into the bank's ratings," said Leo Wah, a Moody's VP/senior analyst.

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