KEB Hana Bank, one of the major commercial banks in South Korea, said Friday global credit appraiser Moody's Investors Service upgraded its long-term foreign and local currency deposit ratings to Aa3 from A1 thanks to its improved key credit metrics.
Moody's also upgraded KEB Hana Bank's baseline credit assessment to a3 from Baa1 with a "stable" ratings outlook from positive, according to the bank.
The bank said Moody's cited improvement in its financing system, quality of assets, stability and solvency margin as reasons for the upgrade.
Moody's said KEB Hana Bank showed stronger asset performance through multiyear changes in its loan mix, and its solvency and funding profile improved.
The bank's asset quality has also improved in recent years thanks to its loan portfolio rebalancing strategy, Moody's said.
According to Moody's, KEB Hana Bank's large corporate loans mix has declined, lowering concentration risks.
As of March, large corporate loans accounted for 9 percent of KEB Hana Bank's total loans, while small and medium-sized enterprise loans took up 43 percent, unsecured personal loans 11 percent and mortgage loans 36 percent.
The credit appraiser said KEB Hana Bank is expected to maintain stable asset quality and strengthened capitalization over the next 12 to 18 months.
Source: Yonhap News Agency