Fitch keeps Korea Exchange on positive watch

Fitch Ratings said that it was maintaining the rating watch positive on Korea Exchange Bank's BBB+ long-term issuer default rating, BBB+ senior issue rating, BBB lower tier 2 issue rating and BBB- upper tier 2 issue rating.

Meanwhile, the remainder of the bank's ratings were affirmed as follows: F2 short-term foreign-currency, C individual and 2 support.

Fitch said the bank's ratings have historically been constrained by credit quality problems, in regards to large corporates following South Korea's 1998 financial crisis and later by the country's 2003 credit card crisis.

These problems have now been rectified with the bank reporting good levels of both profitability and balance sheet strength and its ratings are on rating watch positive pending completion of its acquisition by Kookmin Bank, the agency said.

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