Moody's boosts Korea banks

Moody's Investors Service said it published the rating results for banks in Korea as part of the application of its refined joint default analysis and updated bank financial strength rating methodologies.

The updated bank financial strength rating methodology has led to bank financial strength rating upgrades for most of the Korean banks rated by Moody's, reflecting their improving financial fundamentals and evolving franchises.

The ratings changes include:

Citibank Korea Inc.'s bank financial strength rating is changed to C- from D+ and the global local-currency deposit ratings are assigned at Aa3/prime-1. The foreign-currency deposit ratings are unchanged at A3/prime-2. The foreign-currency debt rating for subordinated obligations is unchanged at A1. All the ratings have a stable outlook except for the foreign-currency deposit ratings, which carry a positive outlook.

Hana Bank's bank financial strength rating is changed to C from D+. The global local-currency deposit ratings are assigned at A1/prime-1. The foreign-currency deposit ratings are unchanged at A3/prime-2 and the foreign-currency debt rating for senior obligations is changed to A1 from A3 and for subordinated obligations to A2 from Baa1. The foreign-currency short-term debt rating is unchanged at prime-1. All ratings have a stable outlook except for the foreign-currency deposit ratings, which carry a positive outlook.

Industrial Bank of Korea's bank financial strength rating is changed to D+ from D-. The foreign-currency deposit ratings are unchanged at A3/prime-2. The foreign-currency debt rating for senior obligations is changed to A1 from A3 and for subordinated obligations to A1 from Baa1. The foreign-currency short-term debt rating is unchanged at prime-1. All the ratings have a stable outlook except for the foreign-currency deposit ratings, which carry a positive outlook.

Kookmin Bank's bank financial strength rating is changed to C from D+. The global local-currency deposit ratings are assigned at Aa3/prime-1. The foreign-currency deposit ratings are unchanged at A3/prime-2. The foreign-currency debt rating for senior obligations is changed to A1 from A3 and for subordinated obligations to A1 from Baa1. The foreign-currency short-term debt rating is unchanged at prime-1. All the ratings have a stable outlook except for the foreign-currency deposit ratings, which carry a positive outlook.

Korea Development Bank's bank financial strength rating is changed to D from D-. The global local-currency deposit ratings assigned are Aa1/prime-1. The foreign-currency deposit ratings are unchanged at A3/prime-2. The foreign-currency debt rating for senior obligations is changed to Aa3 from A3. The Aa3 debt rating pierces Korea's country ceiling for foreign-currency debt and is determined by the bank's Aa1 local-currency rating, Korea's A3 foreign-currency government bond rating, Korea's A1 country ceiling for foreign-currency bonds and the debt's eligibility to pierce the ceiling. The foreign-currency short term debt rating is unchanged at prime-1. All ratings have a stable outlook except for the foreign-currency deposit ratings, which carry a positive outlook.

Korea Exchange Bank's bank financial strength rating is changed to C- from D. The foreign-currency long-term deposit rating is changed to A3 from Baa2. The foreign-currency short-term deposit rating is unchanged at prime-2. The foreign-currency debt rating for senior obligations is changed to A2 from Baa2 and for subordinated obligations to A3 from Baa3. The foreign-currency short-term debt rating is changed to prime-1 from prime-2. All the ratings have a stable outlook except for the foreign-currency deposit ratings, which carry a positive outlook. National Agricultural Cooperative Federation's bank financial strength rating is changed to D from D-. The foreign-currency deposit ratings are unchanged at A3/prime-2. The issuer rating and foreign-currency debt rating for senior obligations are changed to A2 from A3. The foreign-currency debt rating for subordinated obligations is changed to A3 from Baa1. The foreign-currency short-term debt rating is unchanged at prime-1. All ratings have a stable outlook except for the foreign-currency deposit ratings, which carry a positive outlook.

Pusan Bank's bank financial strength rating is changed to C- from D. The global local-currency deposit ratings are assigned at A2/prime-1. The foreign-currency long-term deposit ratings are changed to A3 from Baa2. The foreign-currency short-term deposit ratings are unchanged at prime-2. The foreign-currency debt rating for subordinated obligations is changed to A3 from Baa3. All the ratings have stable outlooks except for the foreign-currency deposit ratings, which carry a positive outlook.

Shinhan Bank's bank financial strength rating is changed to C from D+. The foreign-currency deposit ratings are unchanged at A3/prime-2. The foreign-currency debt rating for senior obligations is changed to A1 from A3, for subordinated obligations to A2 from Baa1 and for hybrid tier 1 securities to A3 from Baa2. The foreign-currency short-term debt rating is unchanged at prime-1. All ratings have a stable outlook except for the foreign-currency deposit ratings, which carry a positive outlook.

Standard Chartered First Bank Korea Ltd.'s bank financial strength rating is unchanged at D+, but the outlook was revised to positive from stable. The global local-currency deposit ratings assigned are A2/prime-1. The foreign-currency deposit ratings are unchanged at A3/prime-2. The foreign-currency debt rating for senior obligations is changed to A2 from A3 and for subordinated obligations to A3 from Baa1. The foreign-currency short-term debt rating is unchanged at prime-1. All the ratings have a stable outlook except for the foreign-currency deposit ratings and the bank financial strength rating, which carry positive outlooks.

Suhyup Bank's E+ bank financial strength rating is placed on review for possible upgrade. The global local-currency deposit ratings assigned are A3/prime-1 with the former placed on review for possible upgrade, in line with the bank financial strength rating review. The foreign-currency deposit ratings are unchanged at A3/prime-2. The foreign-currency debt rating for senior obligations of A3 and for subordinated obligation of Baa1 are placed on review for possible upgrade. The foreign-currency short-term debt rating is unchanged at prime-1. All the ratings not on review have stable outlooks. The review is to consider the bank's progress in enhancing its economic solvency.

Woori Bank's bank financial strength rating is changed to C from D+. The foreign-currency deposit ratings are unchanged at A3/prime-2. The foreign-currency debt rating for senior obligations is changed to A1 from A3, for subordinated obligations to A2 from Baa1 and for hybrid tier 1 securities to A3 from Baa2. The foreign-currency short-term debt rating is unchanged at prime-1. All the ratings have a stable outlook except for the foreign-currency deposit ratings, which carry a positive outlook.

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