Fitch upgrades Woori Bank

Fitch Ratings said it upgraded South Korea-based Woori Bank's (A-/stable) legacy subordinated unsecured notes to BBB+ from BBB-.

The two-notch upgrade reflects Fitch's reassessment of the Woori's legacy lower tier 2 capital securities. The agency has gained sufficient confidence that sovereign support will flow through to bank’s tier 2 regulatory capital securities in South Korea due to the authorities' recent revision of its policy on subordinated capital securities.

Previously, the agency believed that the potential provision of extraordinary sovereign support would not be reliable for such legacy tier 2 notes of any Korean commercial bank despite the terms and conditions of such notes.

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