Moody's upgrades Woori Bank

Moody's Investors Service said it raised South Korea-based Woori Bank's bank financial strength rating to D+ from D. The Baa1 senior debt rating, Baa2 subordinated debt rating, Baa1 long-term deposit rating and Prime-2 short-term deposit rating are unaffected. The outlook is stable.

Moody's said the rating action reflects Woori's continued progress in strengthening its financial profile, particularly improvements to its economic capital and recurring earnings power. In addition, the higher rating anticipates that the volatility in the bank's operating performance seen after its founding will be more subdued going forward.

Since its establishment in January 1999, Woori has significantly enhanced its financial fundamentals, the agency said. Specifically, profitability has turned around and problem loans are now at manageable levels. Furthermore, internal capital generation, coupled with substantial capital injections from the government, has propelled Woori back to a moderate level of economic solvency.

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