Moody's rates Woori

Moody's Investors Service said it has assigned a Baa3 issuer rating to Woori Finance Holdings of Korea. The outlook is stable.

Moody's said the rating reflects the structural subordination of Woori Finance Holdings' claims on Woori Bank (rated Baa1/P-2/D-), Woori Finance Holdings' limited liquidity, and the systemic importance of Woori Finance Holdings.

The rating also considers Woori Finance Holdings' modest financial profile on a stand-alone basis. In particular, its liquidity levels appear tight, while its capacity to internally generate funds is relatively limited. Moreover, a meaningful amount of the group's debt obligations is scheduled to mature in the near future although refinancing does not appear to represent a high event risk, given its systemic importance.

Our assessment also takes into account potential additional debt given the group's ambitions to acquire a securities company. In early May, Woori Finance Holdings was named one of two preferred bidders for LG Investment & Securities.

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