/RATINGS: Fitch: Coronavirus Reduces....>

SOUTH KOREA: /RATINGS: Fitch: Coronavirus Reduces Korean Banks' Ratings Headroom

- Fitch Ratings has hosted an investor webinar discussing the various negative

rating actions on South Korea's four major commercial banks, as well as

developing trends on these banks' intrinsic credit profiles. The risks facing

banks in Korea have increased substantially amid the coronavirus-induced

recession due to the significant shock to the trade-reliant domestic economy.

Fitch expects a deep global recession in 1H20 followed by a moderate recovery

through 2021. The ratings headroom for the four banks' standalone credit

strengths have reduced significantly, after gradually improving over the

previous four years. Fitch now forecasts a significant weakening in the

financial performance of the four banks to over the next couple of years because

we expect borrowers to face significant challenges in servicing debt despite

extensive support measures by the authorities.

- Link: https://tinyurl.com/y8z5vb7g