Moody's may cut 10 Korean banks

Moody's Investors Service said it put on review for possible downgrade the ratings of 10 Korean financial institutions, whose foreign-currency debt ratings are higher than that of the government.

The banks on downgrade review include Citibank Korea Inc., Export-Import Bank of Korea (Kexim), Hana Bank, Industrial Bank of Korea, Kookmin Bank, Korea Development Bank, National Agricultural Cooperative Federation, Shinhan Bank, Woori Bank and Woori Finance Holdings.

The review follows concerns about Korea banks' foreign-currency obligations and the increased dependence of the banks on the Korean government for foreign-currency support, Moody's said.

The review will consider the appropriateness of the banks' foreign-currency debt ratings against the support the bank receives from the government, the agency said.

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