Moody's considers possible ratings downgrade of 10 S. Korean banks

(ATTN: UPDATES with mored details from para 3)
SEOUL, Jan. 15 (Yonhap) -- Moody's Investors Service said Thursday that it is
reviewing a possible ratings downgrade of 10 South Korean banks to reflect
concerns related to foreign currency obligations.

The banks being reviewed are Citibank Korea Inc., Export-Import Bank of Korea,
Hana Bank, Kookmin Bank, Korea Development Bank, Industrial Bank of Korea,
Shinhan Bank, Woori Bank, Woori Financial Holdings and a lender operated by the
National Agriculture Cooperative Federation, it said.
Moody's said the review will consider the appropriateness of banks' foreign
currency debt ratings vis-a-vis their reliance on government support to secure
external funding.
It pointed out that since the lenders were becoming dependent on the government
it would be appropriate to adjust their ratings to reflect this development.
The financial service provider also said it would examine the banks' system-wide
access to foreign currency such as swap agreements and direct issuances.
South Korean banks in the past had borrowed from abroad to meet local loan
requirements, but the recent international financial crunch has hurt their
ability to generate fresh funds by issuing bonds.
Moody's, meanwhile, added that even if the ratings of the banks were lowered they
would not fall below the government's foreign currency bond rating, which is
currently at A2 with a stable outlook.
It stressed that the review does not reflect a change in Moody's outlook for
South Korea's sovereign rating and ceiling on debt and deposits.
yonngong@yna.co.kr
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