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Fitch affirms NongHyup Bank's ratings

Fitch Ratings affirmed NongHyup Bank's long-term issuer default rating at A-, with a stable outlook.

The rating agency said Aug. 10 that it also affirmed the bank's viability rating at "bbb" and short-term issuer default rating at F1. The support rating was affirmed at "1" and the support rating floor was affirmed at A-.

Fitch said the ratings reflect the extremely high probability that the South Korean government would support the bank in times of need given its systemic importance as a major commercial bank in South Korea's banking system.

The bank's viability rating takes into account its operational link to the National Agricultural Cooperative Federation, its ultimate parent. It also reflects the bank's significant loan and deposit franchise in South Korea, whose economy has remained resilient in recent years despite some headwinds.

NongHyup Bank's ratings are sensitive to potential changes in Fitch's views around the probability or ability of South Korean authorities to provide support to the bank.

Fitch could downgrade the bank's ratings if the risk appetite noticeably increases or its capitalization buffer significantly deteriorates.

NongHyup Financial Group Inc. is the direct parent of NongHyup Bank.