...Solid Profile, Highly Credible Management: Shinhan Bank's Issuer Default Ratings (IDRs) are underpinned by its strong local franchise in South Korea, a diversified business model, and stable management with a high degree of credibility among major constituencies. Shinhan is one of Korea's domestic systemically important banks, and accounted for 12% and 14% of the system's loans and deposits, respectively, at end-2018. Relatively Benign Operating Environment: Shinhan's businesses take place predominantly in Korea where the macroeconomic environment has been strong despite challenges relative to similarly rated countries. We believe that the authorities' broadly accommodative but generally prudent measures allow local commercial lenders to benefit from cyclically low credit costs. Household Leverage Not an Immediate Issue: Fitch does not see Korea's household debt- servicing ability as a serious or near-term issue. This is because we expect low policy rates and broadly steady local property...
