S&P rates Woori Bank notes BBB+

Standard & Poor's said it assigned a BBB+ rating to Woori Bank's (A-/negative/A-2) proposed 7.63% lower tier 2 subordinated notes due April 2015.

The notes are being issued in connection with the bank's offer to exchange new notes for its outstanding $400 million 5.75% lower tier II subordinated notes due March 13, 2014.

Ratings reflect the bank's strong market position as Korea's second-largest bank and a core operating bank subsidiary of Woori Financial Group, the agency said.

Ratings are constrained by Woori's relatively large exposure to the construction industry, whose creditworthiness is under severe pressure due to Korea's stagnating housing market and economic slowdown, the agency noted.

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