Moody's cuts Standard Chartered view to negative

Moody's Investors Service said it changed the outlook on the ratings of Standard Chartered First Bank Korea to negative from stable.

The affected ratings include the bank's A1 long-term global local- and foreign-currency deposits ratings, provisional A2 foreign-currency subordinated debt ratings, provisional A3 foreign-currency junior subordinated debt ratings and C- bank financial strength rating.

The prime-1 short-term rating is not affected and continues to carry a stable outlook, Moody's said.

The outlook change reflects concerns over the potential impact on the bank's franchise if the current strike, with more than 40% of its employees participating, continues for several more weeks, the agency said.

The strike has not yet had much of a negative impact on the bank's financials, Moody's said, and the bank maintains a good liquidity position.

But, the agency noted that it is uncertain when the strike will end.

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