Fitch drops Busan Bank view to stable

Fitch Ratings said it revised Busan Bank's outlook to stable from positive.

The agency also said it affirmed the bank's long-term foreign-currency issuer default rating at BBB+ and short-term foreign-currency issuer default rating at F2.

The outlook change reflects the bank's ambitious loan growth plans amid the global economic slowdown and concentration risk on small- and medium-sized enterprise manufacturers, Fitch said.

The agency noted that Korea's banking system has a history of strong loan growth followed by deterioration in asset quality, with the most recent global financial crisis as the latest example.

But, Fitch said the bank is one of the most resilient banks in Korea, with a track record of sound operating performance in challenging environments.

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