Fitch affirms Shinhan Card, Hyundai Card

Fitch Ratings said it affirmed the ratings on the Shinhan and Hyundai credit card companies.

Shinhan Card Co.'s long-term foreign-currency issuer default rating was affirmed at BBB+ and short-term foreign-currency issuer default rating at F2. The outlook is stable.

Hyundai Card Co., Ltd.'s long-term foreign-currency issuer default rating was affirmed at BBB and short-term foreign-currency issuer default rating at F2. The outlook remains positive.

Fitch said it recognizes arguments for higher issuer default ratings on both companies given its consistently strong performance and solid balance sheet/liquidity. But, the agency said it affirmed the ratings in light of higher interest rates and a softening economic outlook in Korea, which is likely to crimp credit card company margins and result in higher credit costs.

On balance however, the agency said it believes that Shinhan and Hyundai will continue to report satisfactory profitability, albeit down from their good current levels.

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