Fitch: Woori Bank notes BBB+

Fitch Ratings said it assigned Woori Bank's proposed lower tier II subordinated dollar-denominated notes an expected rating of BBB+.

The notes will be issued under the bank's existing $7 billion global medium term note program. Both the size and the tenor of the issue have yet to be determined.

The proceeds will be used for the bank's general working purposes or to refinance its maturing lower tier II subordinated debt, the agency said.

The issue is rated one-notch lower than Woori's A- long-term foreign-currency issuer default rating, reflecting the notes' subordinated status, Fitch said.

The notes will be subordinated to the claims of senior creditors, but will rank senior to all share capital and tier 1 capital instruments issued by Woori, the agency said.

The ratings also consider expectations of an extremely high probability of support from the South Korean government if needed, given its systemic importance as one of the major commercial banks in South Korea and the government's majority ownership in the bank through Woori Finance Holdings, Fitch said.

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