Fitch lowers Standard Chartered Bank Korea

Fitch Ratings said it downgraded the long-term issuer default rating on Standard Chartered Bank Korea Ltd. to A from A+.

The outlook is stable.

The agency also said it affirmed the viability rating at BBB.

The downgrade of the issuer default rating reflects the downgrade in the viability rating of its parent, Standard Chartered Bank, to A from A+, Fitch said.

Standard Chartered Bank Korea’s ratings reflect a view that there is an extremely high probability that the Korean subsidiary would be supported by its parent, if needed, the agency said.

Standard Chartered Bank Korea, which operates in export-oriented South Korea, is a core part of the group’s extensive international transaction banking operation, Fitch said.

Standard Chartered Bank Korea’s viability rating reflects its weak underlying profitability and company profile relative to domestic peers, the agency said, and a strengthening balance sheet amid improving risk appetite.

The rating also considers the challenging operating environment in South Korea, Fitch added.

© 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.