...Strong Retail Banking Franchise : Kookmin Bank's Issuer Default Ratings (IDRs) are underpinned by its substantial retail franchise in South Korea. Kookmin, as one of Korea's domestic systemically important banks, accounted for 26% and 21% of the system's retail deposits and residential mortgages, respectively, at end-2018. Fitch Ratings expects the bank's retail-oriented operations to support its stable performance over the next tw o years. Relatively Benign Operating Environm ent: Kookmin operates mainly in Korea, w here the macroeconomic environment has been resilient despite challenges. We believe that the authorities' broadly accommodative yet generally prudent measures allow local commercial lenders to benefit from cyclically low credit costs. High Household Leverage ; Conservative Underwriting: Fitch does not see Korea's household debt-servicing ability as a serious or near-ter m issue, as w e expect low policy rates and broadly steady local property and labour markets over the next...
