S&P rates three Korean banks

Standard & Poor's said it assigned its C+ bank fundamental strength rating to Industrial Bank of Korea (A/stable/A-1), National Agricultural Cooperative Federation (A/stable/A-1) and Suhyup Bank (A-/stable).

The C+ BFSR on Industial Bank of Korea reflects its sound asset quality, adequate capitalization and strong presence in the small and midsize enterprise lending market, while the rating also reflects its relatively weak funding capability from deposits and legal constraints on the diversification of its credit portfolio, the agency said.

The C+ BFSR on National Agricultural reflects its good market position, adequate capitalization and asset quality, as well as its relatively weak profitability, the agency added.

S&P noted that the C+ BFSR on Suhyup Bank reflects steady improvement in its asset quality, its specialized market position in the marine sector, as well as the bank's weak retail customer base and relatively weak profitability.

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