Fitch lifts Shinhan Bank view to stable

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

The outlook revision reflects that the corporate control and governance issues involving the former top management team of Shinhan Financial Group, of which Shinhan Bank is the flagship subsidiary, have not resulted in notable deterioration in the bank's franchise and operations, save for a dent in the group's reputation, Fitch said.

The agency noted that some of the bank's financial metrics have improved since September 2010, while the new management installed at Shinhan Financial in March 2011 has been adequately addressing the issues.

The bank's ratings are underpinned by its substantial local franchise and strong capitalization, aided by prudent risk management and a strong commercial bias, Fitch said.

The ratings also take into account its below-average funding profile and the subdued operating environment, the agency added.

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