...IDRs Reflect VR and State-Support: KEB Hana Bank's Issuer Default Ratings (IDRs) are driven by its Viability Rating (VR), and are also underpinned by Fitch Ratings' continued belief of an extremely high probability that the South Korean government (AA-/Stable) would support KEB Hana, if required. KEB Hana is a domestic systemically important bank in Korea, with 13% and 15% of the banking system's loans and deposits, respectively. Fundamentals Strengthening: KEB Hana has been consolidating its standalone credit profile since the bank's merger with Korea Exchange Bank in 2015. The bank's financial profile is supported by its significant and strengthening franchise. The credibility of management is improving, given that objectives/targets for the domestic market are delivered as planned, although its ambitious overseas growth target appears to be very challenging to achieve. Relatively Benign Environment: KEB Hana's businesses take place predominantly in Korea, which has a resilient macroeconomy...
