Fitch cuts Woori Investment

Fitch Ratings said it downgraded Woori Investment & Securities Co., Ltd.'s long-term foreign-currency issuer default rating to BBB from BBB+, along with its short-term foreign-currency issuer default rating to F3 from F2.

The outlook is stable.

The downgrades reflect a view that the company's underlying profitability will be structurally lower over the longer-term, given the inherently competitive nature of the Korean securities market, pressure on trading income under rising market interests and potential losses on real estate project financing and principal investments, Fitch said.

The company's profitability has weakened, with its return on average equity staying at 5% to 6% from 2009, the agency said, and higher loan loss charges particularly on real estate project financing.

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