Moody's lowers Jeonbuk Bank

Moody's Investors Service said it downgraded the long-term global local and foreign currency deposit ratings of Jeonbuk Bank to Baa1 from A3 as a result of the bank's aggressive asset growth.

The standalone bank financial strength rating of D+ was affirmed, but it now maps to a baseline credit assessment of Ba1 from Baa3 previously.

The bank's short-term ratings were downgraded to Prime-2 from Prime-1.

The outlook is stable.

Moody's said the action reflects the fact that during the fourth quarter of 2011, the bank's core tier 1 capital ratio fell to 8.05%. Moody's said it previously indicated that Jeonbuk's rating could come under pressure if the tier 1 ratio slipped below 8.5%.

The downgrade also takes into account potential asset quality concerns from aggressive loan growth, the agency said.

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