Moody's upgrades Woori Finance to Baa1

Moody's Investors Service said it upgraded South Korea-based Woori Finance Holdings Co., Ltd.'s issuer rating to Baa1 from Baa2 to reflect company's reduced dependence on its lead subsidiary, Woori Bank, and the lower severity of loss, if any, for holding company creditors compared to that for junior creditors at the company's operating subsidiaries.

The outlook is stable.

"If one particular subsidiary encountered financial difficulties, Woori Finance would still own assets in other subsidiaries, which would be inaccessible to the troubled subsidiary's creditors but would be available to cover the holding company's obligations," Moody's senior credit officer Beatrice Woo said in an agency rating.

The rating also considers Woori Finance's modest financial profile on a standalone basis, the agency said. In particular, its liquidity levels appear tight to meet its short-term obligations, although the group has demonstrated its capacity to internally and externally generate funds as evidenced during the credit card crisis.

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