S&P Global Ratings said May 29 that it assigned South Korea-based Shinhan Financial Group Co. Ltd. a long-term issuer credit rating of A and a short-term issuer credit of A-1.

The outlook on the long-term rating is stable.

The ratings of Shinhan Financial reflects its strong market position in South Korea, with a diversified business structure across banking and nonbanking segments, as well as an adequate capital buffer to support its business growth, the rating agency said.

Due to Shinhan Financial's high systemic importance to South Korea's banking system, Ratings believes that the group would be likely to receive extraordinary government support, which would be channeled to its unit Shinhan Bank Co. Ltd., if the bank were to fall into financial distress.

The stable outlook on Shinhan Financial reflects the rating agency's view that the group will maintain adequate capitalization while sustaining low credit losses and sound asset quality over the next 18 to 24 months.

Descriptions of credit ratings in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings document referred to in this news brief can be found here.