...IDRs Equalised With Sovereign: Industrial Bank of Korea's (IBK) Issuer Default Ratings (IDRs) are equalised with the South Korean sovereign's, reflecting IBK's important role in supporting SMEs, the government's controlling ownership (55% of common equity at end-1Q17, including 3% through the other policy banks) and the government's loss absorption obligation as stated in the IBK Act, which Fitch Ratings views as a de facto solvency guarantee. Significant Commercial Orientation: Fitch assigned an `a-' Viability Rating (VR) to IBK in July 2017, based on our view that IBK's operations are significantly commercially oriented, rather than being largely driven by its policy role, which is more prevalent in times of economic stress. Strong Company Profile: IBK has delivered a consistent performance through the economic cycle with its SME-focused operations in the resilient South Korean economy, backed by its sound risk-minded corporate culture and strong domestic franchise (holding 22% of the...
