Korea Ratings "Daewoo Agricultural Bank Bond Rating Coco presents new risks in shipbuilding"

[Goyounghun Korea financial newspaper reporter] had presented a new rating change factor of contingent capital securities (bonds Coco) of the Agricultural Bank of Korea Ratings. Rating outlook was stable rating (Stable).

Korea Ratings is one over the past six days closing performance in 2016 reflects periodic assessment revealed on the 10th that maintain long-term credit rating of the Agricultural Bank.

Korea Ratings Jeong Hyoseop researchers "Unsecured agricultural finance receivables (bank), subordinated to agricultural financial debt (banks), new agricultural case of financial debt (bank), I say reflects the very high government support likely to have established law, legal, and business status is maintained , the possibility of a credit rating downgrade for government support is likely to maintain the current level is lower, "he said.

"But Coco bonds if the credit rating because the government does not support likely not reflect the financial strength degradation is lead to direct Ratings downward pressure," said, "especially given the DSME-related exposures of the Agricultural Bank, this DSME restructuring it is necessary to examine the effects additional losses will have on the financial strength of the "he explained.

The Korea Ratings said it has proposed a new rating change factor for Coco bond through this periodical evaluation.



Daily Economic News Finance FNTIMES - commercial reprint, copy, distribute prohibited purposes under the Copyright Act
Copyright ⓒ Korea's Financial News & FNTIMES.com