Moody’s affirms Shinhan Financial

Moody's Investors Service said it affirmed the A1 long-term foreign currency issuer rating and Prime-1 short-term foreign currency issuer rating of Shinhan Financial Group Co., Ltd.

The outlook is stable.

Moody's also affirmed Shinhan's additional tier 1 non-cumulative preference stock rating of Baa3(hyb).

Shinhan entered into a purchase and sale agreement to acquire a 59.15% stake in ING Life Insurance Korea from MBK Partners for a total cash consideration of KRW 2.3 trillion.

The agency said that in affirming Shinhan's ratings, it assessed the impact of the acquisition to Shinhan FG's leverage.

Specifically, Shinhan’s stated double leverage ratio will rise to about 124% after the acquisition, and after stripping out additional tier 1 capital securities, its double leverage ratio will rise to about 133%, Moody’s said.

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