S&P affirms Hana, Korea Exchange banks

Standard & Poor's said it affirmed an A-/A-2 counterparty credit ratings on Hana Bank and the BBB+/A-2 ratings on Korea Exchange Bank.

The agency also said it removed Hana Bank's A- counterparty credit rating from CreditWatch with negative implications, where it was placed in November.

The agency said it removed the rating from CreditWatch negative because it now views Hana's credit standing with greater ease, irrespective of whether Hana Financial Group's acquisition of Korea Exchange Bank gets approval and if it ultimately goes ahead or not.

The outlook on Hana Bank is stable.

The rating on Hana's $500 million 4.5% senior unsecured bond due Oct. 30, 2015 and its lower tier II subordinated bonds also were removed from CreditWatch negative.

The agency also said it placed the BBB+ counterparty credit rating on Korea Exchange Bank on CreditWatch with positive implications.

If the acquisition proceeds, S&P said it believes that Korea Exchange Bank is likely to become an important subsidiary of the enlarged Hana Financial Group and could benefit from potential support from the higher-rated Hana.

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