Fitch rates Shinhan Bank notes A

Fitch Ratings said it assigned an expected rating of A to Shinhan Bank's proposed dollar-denominated senior unsecured notes due June 2012. The issue size has yet to be confirmed. The final rating is contingent upon receipt of final documents.

The agency said it remains concerned about the potential for higher-than-usual credit costs at Shinhan (and Korea's other banks). But, Fitch said Shinhan's balance sheet strength should remain adequate over the longer term.

Credit cost concerns arise out of the challenging global and domestic economic environments - particularly given Korean banks' strong loans growth in the lead-up to the global credit crisis and their considerable exposure to construction/real-estate companies, the agency said.

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