Moody’s reviews Standard Chartered Korea

Moody's Investors Service said it placed the long-term and short-term ratings of Standard Chartered Bank Korea Ltd. (SCBK) on review for downgrade.

The action follows the review for downgrade placed on its parent Standard Chartered Bank (SCB, foreign currency deposits Aa2 review for downgrade, baseline credit assessment (BCA) a2 review for downgrade) ratings.

On Nov. 9, the long-term ratings of Standard Chartered Bank were placed under review for downgrade, following the bank's announcement of a pre-tax loss of $139 million in the third quarter of 2015, as well as a number of strategic initiatives to improve its solvency and profitability. A downgrade of Standard Chartered Bank’s ratings is likely if Moody's assesses that credit concerns relating to its profitability and asset quality outlook outweigh the expected improvement in its capital.

"If SCB's ratings are downgraded, there is a likelihood that SCBK's ratings will also be downgraded in light of the two notches of affiliate support incorporated into the ratings of SCBK," Moody's senior credit officer Sophia Lee said in a news release.

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