Moody’s expects to conclude the review in March 2016, after incorporating SCB’s efforts to turn around SCBK’s performance, as well as the detailed results of SCBK’s parent, Standard Chartered Bank’s (SCB, FC deposits Aa2 rating under review for downgrade, BCA a2 rating under review for downgrade) performance for 2015.
These results will be available in late February.
Moody’s had originally placed the long-term ratings of SCBK on review on 9 November 2015. Please refer to “Moody’s reviews for downgrade Standard Chartered Bank Korea’s ratings” published on 9 November 2015.
Moody’s notes that SCB is restructuring its poorly performing Korean retail and commercial banking businesses, introducing some uncertainty as to the future of SCBK’s operations.
The ratings review of SCBK will consider whether: (1) these initiatives have the potential to change SCBK’s stand-alone credit profile, as expressed by its BCA; and/or (2) to change the strategic importance of SCBK to SCB and therefore potentially to affect the strength of support from SCB.
The following ratings are on review for downgrade:
– Local- and foreign-currency long-term deposit ratings of A1
– Foreign currency senior unsecured MTN rating of (P)A1
– Local- and foreign-currency short-term deposit ratings of P-1
– Foreign currency commercial paper and other short-term ratings of P-1/(P)P-1
– Long-term and short-term counterparty risk assessment of A1(cr) and P-1(cr)
– BCA of baa2, and adjusted BCA of a3
The principal methodology used in these ratings/analysis was Banks published in January 2016. Please see the Ratings Methodologies page on www.moodys.com for a copy of this methodology.
SCBK is headquartered in Seoul, with total assets of KRW61.7 trillion or USD54 billion as of June 2015.
