Fitch Ratings upgraded KGI Bank Co. Ltd.'s viability rating and raised theoutlook on its issuer default ratings to stable from negative.
The rating agency upgraded to "bbb" from"bb+" the bank's viability rating. At the same time, the bank'slong-term issuer default ratings were affirmed at BBB.
Fitch said the upgrade of the viability rating was due toits expectation that the bank's ordinary operations will benefit from parentChina Development FinancialHolding Corp.'s credit strength. In addition, the group hasadequate flexibility in funding and capital for growth and loss absorption.
The outlook was raised to stable to reflect the bank'sadequate assets quality, which consists of large corporate lending and good qualitybond holding.
The bank's ratings are sensitive to the overall ratings ofthe group. Any aggressive risk-taking or ramping up the proprietary tradingbusiness at KGI Securities could put pressure on the ratings.