S&P rates Industrial Bank of Korea bonds A

Standard & Poor's said it assigned an A rating to Industrial Bank of Korea's (A/stable/A-1) proposed five-year senior unsecured bonds.

The long-term counterparty credit rating reflects expected support from the government of Korea (foreign-currency A/stable/A-1; local currency A+/stable/A-1) given its public policy role, satisfactory market position in the small and midsize enterprise lending market, and adequate capitalization, the agency said.

Constraining factors on the ratings include the bank's weak retail deposit base and concentration toward the small and midsize enterprise lending market segment in its credit portfolio, S&P said.

Ratings also consider the likelihood of a gradual reduction in government ownership and the bank's diminishing role in supporting small and midsize enterprises, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.