Fitch affirms Bank CenterCredit

Fitch Ratings said it affirmed Bank CenterCredit's ratings, including its long- and short-term issuer default ratings at B, support rating at 5, individual rating at D/E and senior unsecured debt at B with a recovery rating of RR4.

The outlook is stable.

The affirmation follows the announcement by South Korea's Kookmin Bank that it has increased its stake in Bank CenterCredit's total share capital to 42% from 30% and that the International Finance Corp. has acquired a 10% stake. While Fitch views the capital injection and the increased foreign shareholder participation as positive, the expectation that the transaction would be completed was already factored into the bank's ratings.

In the agency's view, moderate financial support from Kookmin is possible, in case of need, but Kookmin's gradual approach to its acquisition of Bank CenterCredit, its apparent keenness to avoid consolidation of Bank CenterCredit at least in the near term and the limited integration between the two banks mean that support cannot be relied upon in all circumstances.

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