...Viability Rating-Driven IDRs: The Long-Term IDRs of KEB Hana Bank is driven by its Viability Rating (VR), which is underpinned by the bank's significant domestic franchise and above- industry average capitalisation. It also reflects the bank's moderate management quality, more aggressive risk appetite relative to its higher-rated peers and sound asset quality. Significant Domestic Franchise: The domestic franchise of KEB Hana strengthened after the smooth completion of its merger with Korea Exchange Bank in 3Q15 raised its competitive position to account for 13% and 15% of the system's loans and deposits, respectively (Hana Bank pre-merger: 8% and 10%), and it was designated as a domestic systemically important bank by Korean authorities at end-2015. Its strength lies particularly in trade finance in which it has about 40% market share, backed by its entrenched foreign-currency clearing system. Stronger Capitalisation: Its Fitch Core Capital (FCC) ratio had improved significantly to 14.7%...
