...State Support Driven IDRs: Woori Bank's Issuer Default Ratings (IDRs) reflect Fitch Ratings' continued belief of an extremely high probability that the South Korean government (AA-/Stable) would support Woori, if required. This view is based on Woori's status as a domestic systemically important bank in Korea, with 13% and 15% of the banking system's loans and deposits, respectively. Relatively Benign Operating Environment: We believe that the Korean authorities' broadly accommodative but generally prudent measures allow local commercial lenders to benefit from cyclically low credit costs. Woori's businesses predominantly take place in Korea, which has a resilient macroeconomic environment despite challenges relative to similarly rated countries. Household Leverage Not Immediate Issue: Fitch does not see Korea's household debt- servicing ability as a serious or near-term issue, as we expect low policy rates and broadly steady local property and labour markets over the next few years. Woori's...
