Moody’s changes six Korean financials to positive

Moody's Investors Service said it revised the outlooks for the foreign currency long-term senior unsecured debt ratings of six Korean financial institutions to positive from stable.

The six entities are: Export-Import Bank of Korea, Industrial Bank of Korea, Korea Development Bank, Korea Housing Finance Corp., Korea Securities Finance Corp. and Korea Student Aid Foundation.

The actions follow the agency’s April 10 revision of the outlook for Korea's sovereign ratings to positive from stable.

Moody's said it revised the outlook for the foreign currency long-term senior unsecured debt ratings of the six institutions to positive because of their strong linkages with the government through in some cases direct ownership and in all cases an important role in supporting national economic policy. Many of these entities also benefit from certain forms of explicit government support.

Consequently, the ratings are closely linked to the sovereign rating and the agency expects the government (Aa3 positive) to support these entities in a timely manner, if needed.

© 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.