Moody’s lifts KDB Asia view to positive

Moody’s Investors Service said it affirmed KDB Asia Ltd.’s local- and foreign-currency long-term deposit ratings of Aa3, baseline credit assessment of Ba2 and short-term deposit ratings of P-1.

Moody’s also said it lowered the bank’s adjusted baseline credit assessment to Ba2 from Aa3.

Moody’s also changed its outlook to positive from stable.

The outlook change follows the April revision of the outlook on Korea’s sovereign ratings to positive from stable.

KDB Asia has a strong linkage with the Korean government through its parent, the Korea Development Bank, Moody’s said.

These actions conclude a review that began in March following the publication of Moody’s new bank rating methodology, the agency said.

Because KDB Asia’s business is in Korea and because more than 75% of its loans are for the customers of Korea Development Bank, KDB Asia benefits from operating in an economy with a very high degree of resilience, competitiveness and strong fiscal fundamentals, Moody’s said.

But a moderate degree of susceptibility to event risk also is apparent, the agency added.

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