Moody's cuts Korea Exchange Bank view to negative

Moody's Investors Service said it changed the outlook on the C- bank financial strength rating of Korea Exchange Bank to negative from stable. Its deposit and its A2 senior/A3 subordinated foreign-currency debt ratings are unaffected and have a stable outlook.

This action is consistent with actions taken on the bank financial strength rating outlooks for several other Korean banks, Moody's said.

The change in outlook on Korea Exchange Bank reflects the anticipated deterioration in its creditworthiness due to intensifying stresses from the global credit crisis and weaker domestic economy, the agency said.

These pressures include tight liquidity positions against the backdrop of difficult liquidity conditions, higher cost of domestic refinancing and a weaker economic outlook, which will translate into deteriorating asset quality, Moody's said.

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