Fitch upgrades Shinhan, Korea Exchange banks

Fitch Ratings said it upgraded some ratings of Shinhan Bank and Korea Exchange Bank, and assigned a positive outlook to the ratings of Woori Bank.

Shinhan's long-term foreign-currency issuer default rating was upgraded to A from A-, short-term foreign-currency issuer default rating to F1 from F2, individual rating to B from B/C, senior unsecured debt to A from A- and subordinated and hybrid debt to A- from BBB+. Its support rating is affirmed at 1 with a support rating floor of A-. The outlook was changed to stable from positive.

Korea Exchange Bank long-term foreign-currency issuer default rating was upgraded to A- from BBB+, senior unsecured debt to A- from BBB+ and subordinated debt to BBB+ from BBB. Its short-term foreign-currency issuer default rating is affirmed at F2, individual rating at B/C, support rating at 2 with support rating floor of BBB+. The outlook was changed to stable from positive.

Woori's long-term foreign-currency issuer default rating is affirmed at A-, short-term foreign-currency issuer default rating at F2, individual rating at B/C, support rating at 1, support rating floor at A-, senior unsecured debt at A- and subordinated debt rating at BBB+. The outlook was changed to positive from stable.

Fitch said it was considering these changes for more than a year. The agency said it is confident the new ratings will withstand any mild economic downturn in Korea on the back of slower U.S. growth.

However, a more severe downturn or a further significant intensification of the global 'credit crunch' could place downward pressure on Korean bank ratings in general, Fitch said.

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