S&P lifts Industrial Bank of Korea

Standard & Poor's said it raised the long-term issuer and issue ratings on Industrial Bank of Korea following news that the government is redefining the policy roles for government-related financial institutions.

The Korean government says that it will abolish its privatization plan for Industrial Bank of Korea and it will maintain a controlling stake in the bank, S&P said.

This suggests the government now holds a stronger view on the importance of the bank in terms of its policy-making, the agency said.

S&P also said it expects the bank to undertake active roles in supporting small and midsize enterprises in the future.

The bank now has an extremely high likelihood of receiving timely and sufficient extraordinary support from the government of Korea in the event of financial distress, the agency said.

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