Fitch: Woori Bank notes A-

Fitch Ratings said it assigned an expected A- rating to Woori Bank’s proposed issue of long-term senior unsecured notes.

The size of the notes has yet to be finalized, but Fitch said it does not expect it to be large enough to significantly alter the commercial bank’s overall funding profile. The tenor is 5.5 years, the agency said.

The notes will be issued under Woori’s existing $7 billion global medium-term note program.

The proceeds will be used for general operations, including extending foreign-currency loans and repaying maturing debt and other obligations, Fitch said.

The proposed notes are rated at the same level as the long-term issuer default rating on the bank as they will constitute direct, unconditional, unsecured and unsubordinated obligations of the bank, the agency said.

The ratings are driven by state support, reflecting a belief that the South Korean government has an extremely high propensity to support Woori Bank, if required, Fitch said.

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