Fitch lifts Busan Bank view to stable

Fitch Ratings said it affirmed Busan Bank's long-term issuer default rating at BBB+, along with its viability rating at BBB+.

The outlook also was revised to stable from negative.

Pressure on the bank’s capitalization has eased most recently since a capital injection by its parent, BNK Financial Group, Fitch explained.

The agency also said it expects the bank will maintain its capital ratio at more than 10% unless ongoing restructuring in some troubled corporate sectors puts significant stress on the economy of the bank's main operating region.

The ratings also consider the bank’s solid profitability, which is backed by a high net interest margin, significant franchise in Busan and stable management, Fitch said.

The agency said it does not expect a rapid downsizing of major shipbuilders to result in systemic stress and significantly erode the bank's capital buffer, the agency added.

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