S&P gives KEB Hana notes BBB-

S&P said it gave its BBB- long-term foreign currency issue rating to KEB Hana Bank's planned dollar-denominated Basel III tier-1 subordinated notes.

“The BBB- rating on the notes is three notches below the a- stand-alone credit profile (SACP) on KEB Hana. One notch reflects our assessment of the risk related to subordination, and the other two notches reflect the risk of dividend nonpayment for a tier-1 instrument. We believe our SACP assessment captures any incremental risks related to dividend nonpayment via legally available reserves if and when the bank does not meet certain minimum regulatory capital ratios,” the agency said in a press release.

KEB Hana plans to sell the notes as sustainability bonds, which will be used mainly to finance eligible green and social projects in accordance with its sustainable financing framework.

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