Fitch ups Korea policy banks

Fitch Ratings said it upgraded Korea's three policy banks - Korea Development Bank (KDB), Korea Export-Import Bank (Kexim) and Industrial Bank of Korea (IBK) - and the Small Business Corp. (SBC) to A+ and removed all the entities from Rating Watch positive, where they were placed on Sept. 20.

This follows the upgrade of the Korean sovereign rating to A+ from A.

At the same time, the agency also upgraded six commercial banks' ratings and Woori Finance Holding's long-term ratings, in line with the upgrade in the latter's support rating. The rating actions taken are as follows:

* KDB, Kexim, IBK: long-term foreign currency ratings upgraded to A+ and support ratings affirmed at 1, short-term foreign currency ratings affirmed at F1. Kexim's long-term local currency rating upgraded to AA. The outlook for all the ratings is stable. IBK's sub-debt rating also upgraded to A+.

* SBC: long-term foreign currency rating upgraded to A+ and long-term local currency rating upgraded to AA, short-term foreign currency rating affirmed at F1.

* Kookmin Bank: long-term foreign currency rating upgraded to A and support rating upgraded to 1, individual rating affirmed at B/C. Outlook is stable.

* Shinhan Bank and Chohung Bank: long-term foreign currency rating upgraded to A-, support rating upgraded to 1, short-term foreign currency rating affirmed at F2 and individual rating affirmed at C. The outlook is stable. Shinhan's tier 1 and upper tier 2 subordinated bond ratings were also upgraded to BBB. Chohung's upper tier 2 subordinated bond rating was upgraded to BBB and lower tier 2 subordinated bond rating was upgraded to BBB+.

* Woori Bank: long-term foreign currency rating upgraded to A-, support rating upgraded to 1, short-term foreign currency rating affirmed at F2, individual rating affirmed at B/C. The outlook is stable. The bank's lower tier 2 subordinated bond rating was upgraded to BBB+.

* Hana Bank: long-term foreign currency rating upgraded to A-, support rating to 1, short-term foreign currency rating affirmed at F2, individual rating affirmed at B/C. The outlook is stable. The rating on the bank's hybrid tier 1 notes was upgraded to BBB.

* Woori Finance Holdings: long-term foreign currency rating upgraded to BBB+, short-term foreign currency rating upgraded to F2, support rating affirmed at 5, individual rating affirmed at B/C. The outlook is stable.

* Citibank Korea Inc.: long-term foreign currency rating upgraded to AA-, short-term foreign currency rating upgraded to F1+, support rating affirmed at 1, individual rating affirmed at B/C. The outlook is stable.

* Pusan Bank and Daegu Bank: support rating upgraded to 2. Pusan Bank's individual rating affirmed at B/C and Daegu Bank's individual rating affirmed at C.

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