Moody's assigned first-time ratings to South Korea's Shinhan Financial Group Co. Ltd. and its units, Shinhan Investment Corp. and Shinhan Bank Japan.
The rating agency said May 14 that it assigned Shinhan Financial an A1 long-term and Prime-1 short-term foreign currency issuer rating, with a stable outlook. The ratings are driven by the group's baseline credit assessment of "a3", which reflects the financial profile of its key subsidiaries. The ratings also reflect the assessment of a very high probability of support from the South Korean government when needed, Moody's added.
Meanwhile, Moody's assigned Shinhan Bank Japan an A2 long-term and Prime-1 short-term domestic currency deposit rating, with a stable outlook. It also assigned the bank a baseline credit assessment at "baa2" and an adjusted baseline credit assessment of "a3".
The ratings reflect that the Japanese bank will receive support from the South Korean government through its immediate parent Shinhan Bank Co. Ltd. in times of need.
Moody's also assigned an A3 long-term and Prime-2 short-term foreign currency issuer rating to Shinhan Investment, with a stable outlook. The company's ratings reflect its standalone assessment of "ba1" and the assessment that the company will receive a very high level of support from Shinhan Financial in times of need.
Separately, S&P Global Ratings assigned Shinhan Investment an A- long-term and A-2 short-term issuer credit ratings, with a stable outlook.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.
