S&P lifts Industrial Bank of Korea stand-alone

S&P said it affirmed the long-term and short-term issuer credit ratings on Industrial Bank of Korea at AA- and A-1+, respectively.

The agency also said it affirmed the bank's AA- long-term issue ratings.

The outlook is stable.

S&P also said it revised the stand-alone credit profile on the bank to BBB+ from BBB.

The upward revision of the bank's stand-alone rating reflects a view that the bank's funding profile has sustainably improved, the agency explained.

S&P said it believes the bank has strengthened its deposit franchise as evidenced by its increased customer deposit market share from about 3.5% by year-end 2009 to about 5% by year-end 2016.

This is despite the bank maintaining overall funding costs largely in line with the banking sector average, the agency said.

This is attributed to the bank's efforts to tighten customer relationships and expand new customers nationwide, S&P said.

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