Moody's cuts 12 Korean banks

Moody's Investors Service said it took multiple rating actions on 12 Korean financial institutions to reflect stresses arising from the current crisis and the increasing convergence between the government's ability to support the banks and its own debt capacity.

The downgrade of several bank financial strength ratings and outlooks on the Korean banks reflect an anticipated deterioration in their creditworthiness due to the intense stresses from the current crisis, both globally and domestically, Fitch said. On balance, the banks have had to contend with more numerous and severe strains on their operating performances compared to other Asian banking systems, the agency said.

Citibank Korea Inc.'s bank financial strength rating of C- was confirmed with a negative outlook. Its baseline credit assessment was lowered to Baa2 from Baa1. Global local-currency deposit ratings of A2 were affirmed. The ratings unaffected include foreign-currency long-term and short-term deposit ratings of A2/prime-1. The outlook is stable.

Hana Bank's bank financial strength rating was lowered to C- from C. The revised rating carries a stable outlook. Its baseline credit assessment was lowered to Baa1 from A3. Global local-currency deposit ratings of A1 and foreign-currency subordinated debt of A2 were confirmed with stable outlooks. The ratings unaffected include foreign-currency long-term senior debt rating of A2 and foreign-currency long-term and short-term deposit ratings of A2/prime-1 with stable outlooks.

Industrial Bank of Korea's outlook on its D+ bank financial strength rating was changed to negative from stable. Its baseline credit assessment remains at Baa3. The ratings unaffected include foreign-currency long-term senior and subordinated debt ratings of A2/A2 and foreign-currency long-term and short-term deposit ratings of A2/prime-1. The outlook is stable.

Kookmin Bank's bank financial strength rating was lowered to C- from C. The revised rating carries a stable outlook. Its baseline credit assessment was lowered to Baa1 from A3. Global local-currency deposit ratings were lowered to A1 from Aa3. Foreign-currency subordinated debt of A2 was confirmed with a stable outlook. The ratings unaffected include foreign-currency long-term senior debt ratings of A2 and foreign-currency long-term and short-term deposit ratings of A2/prime-1 with stable outlooks.

Korea Development Bank's global local-currency deposit was lowered to A1 from Aa1. The revised rating carries a negative outlook. The ratings unaffected include bank financial strength rating of D with negative outlook, baseline credit assessment of Ba2 with stable outlook, foreign-currency long-term senior debt rating of A2 and foreign-currency long-term and short-term deposit ratings of A2/prime-1.

Korea Exchange Bank's bank financial strength rating of C- was confirmed with a stable outlook. Its baseline credit assessment was lowered to Baa2 from Baa1. Its global local-currency deposit of A2 was affirmed with a stable outlook. The ratings unaffected include foreign-currency long-term senior debt and subordinated debt of A2/A3 and foreign-currency long-term and short-term deposit of A2/prime-1 with stable outlooks.

National Agricultural Cooperative Federation's outlooks on the D+ bank financial strength rating and A2 foreign-currency subordinated debt rating were changed to negative from stable. Its baseline credit assessment remains at Ba1. The ratings unaffected include its foreign-currency long-term senior debt rating of A2 and foreign-currency long-term and short-term deposit ratings of A2/prime-1.

Shinhan Bank's bank financial strength rating was lowered to C- from C. The revised rating carries a stable outlook. Its baseline credit assessment was lowered to Baa1 from A3. Its foreign-currency subordinated and hybrid tier 1 debt ratings of A2/A3 were confirmed with stable outlooks. The ratings unaffected include foreign-currency long-term senior debt ratings of A2 and foreign-currency long-term and short-term deposit ratings of A2/prime-1 with stable outlooks.

Suhyup Bank's outlook on the D- bank financial strength rating was changed to negative from stable. Its baseline credit assessment remains at Ba3. The outlooks on the long-term ratings - global local-currency and foreign-currency deposit ratings of A2 and foreign-currency senior and subordinated debt ratings of A2/A3 - were changed to negative from stable. The short-term deposit rating of prime-1 was unaffected and carries a stable outlook.

Woori Bank's bank financial strength rating was lowered to C- from C. The revised rating carries a stable outlook. Its baseline credit assessment was lowered to Baa2 from A3. Its foreign-currency subordinated and hybrid tier 1 debt ratings of A2/A3 were confirmed with stable outlooks. The ratings unaffected include its foreign-currency long-term senior debt rating of A2 and foreign-currency long-term and short-term deposit ratings of A2/prime-1 with stable outlooks.

Woori Finance Holdings's issuer rating of A2 was confirmed with a stable outlook.

Woori Investment & Securities's long-term foreign-currency issuer rating was lowered to Baa2 from Baa1. The outlook is stable. Its short-term foreign-currency issuer rating of prime-2 was confirmed.

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