Bangkok--30 Dec--Fitch Ratings
Fitch Ratings (Thailand) has assigned Woori Bank’s unsecured and unsubordinated THB-denominated bonds of up to THB5bn with a minimum maturity of three years a National Long-term rating of ‘AAA(tha)’. The proceeds will be used for the bank’s general banking purposes.
Woori’s ‘AAA(tha)’ issue rating is the highest on Thailand’s National rating scale. The rating is mapped to Thailand’s Long-Term Local Currency IDR (LTLC IDR) of ‘A-’ with Stable Outlook, which is at the same level as Woori’s Long-Term Foreign Currency Issuer Default Rating (LTFC IDR) of ‘A-’ with Stable Outlook.
Woori’s LTFC IDR is driven by the bank’s Support Rating Floor of ‘A-’. Fitch believes there is an extremely high probability of support from the South Korean government (rated ‘A+’/Positive), if required, given its systemic importance as one of the major commercial banks in South Korea and the government’s indirect majority ownership of the bank.
The debt rating could be downgraded if Woori’s LTFC IDR is downgraded below Thailand’s LTLC IDR. Such a scenario would arise if Korea’s sovereign rating is downgraded or if the bank’s systemic importance to the Korean economy is reduced, although Fitch does not expect either scenario to occur in the near term. Alternatively, an upgrade of Thailand’s LTLC IDR may also lead to Woori’s debt being downgraded.
Woori, established in 1999, is Korea’s second-largest bank and the flagship subsidiary of Woori Finance Holdings (WFH). The latter is the largest financial institution by asset size in Korea (about 15% of total system assets). Korea Deposit Insurance Corporation owns a 57% stake in WFH; the latter in turns holds a 100% stake in Woori.