Fitch affirms Industrial Bank of Korea

Fitch Ratings said it affirmed Industrial Bank of Korea's A+ long-term issuer default rating, F1 short-term rating and 1 support rating.

The outlook is stable.

The agency said the bank' ratings are in line with South Korea's sovereign ratings (A+/stable/F1) and reflect the strong support and commitment from the South Korea government and Industrial Bank of Korea's important role in South Korea's economy. Around 83% of its loans are to small and medium-sized enterprises, with a focus on small and start-up manufacturing businesses. The bank also provides retail banking services, including credit cards.

As of the end of June, the bank was still majority-owned by the Korean government (66.7%), which includes a 15.7% indirect stake through two policy banks. As 33.3% of its shares are in free float, the bank aims for reasonable profitability to support both its activities and its shareholder's interests, the agency said.

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