Fitch cuts Shinhan Bank view to negative

Fitch Ratings said it revised Shinhan Bank's outlook to negative from stable and affirmed the bank's long-term foreign-currency issuer default rating at A.

The outlook revision reflects the bank's corporate governance issues and the potential financial and reputational impact of the series of lawsuits against Shinhan Financial Group's senior management team along, with regulatory probes on their potential violation of South Korea's real-name financial transaction law, Fitch said.

Furthermore, these occur against a backdrop of deteriorating loan quality, the agency said.

Although the impact on the bank's financial performance and funding capacity is difficult to estimate in the short-term, it may be the catalyst of a notable deterioration of the bank's standalone credit profile in medium-term, the agency said.

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