Moody's: Korea Exchange Bank positive

Moody's Investors Service said it revised the outlook on Korea Exchange Bank's E+ bank financial strength rating to positive from stable. All other ratings are unaffected.

Moody's said the outlook change reflects the bank's success in maintaining its financial fundamentals, despite the adverse impact on its financial condition of its absorption of troubled credit card subsidiary, Korea Exchange Bank Credit Service.

Moody's said it had expected the merger to have a severe negative impact on Korea Exchange Bank's financial health, given the poor asset quality of the credit card portfolio and the need for loan loss provisions, which were substantial, even by management's own estimates.

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