Bulletin: Woori Bank's Proposed Holding Company Structure Could Put Pressure On Its Capitalization; No Ratings Impact

HONG KONG (S&P Global Ratings) June 22, 2018--S&P Global Ratings today said that a plan by Woori Bank (A/Stable/A-1) to adopt a holding group structure could put pressure on the bank's capitalization. This is particularly if the group aggressively expands its non-banking businesses, either inorganically or organically. However, we expect the group to maintain a controlled growth appetite and continue to improve its risk management, given its track record in recent years. The ratings on Woori Bank are therefore not affected. Woori Bank's board of directors agreed to adopt a holding company structure on June 19, 2018. The proposal is subject to approval by the regulator and shareholders. If the shareholders approve the plan in the general shareholders' meeting scheduled

...HONG KONG (S&P Global Ratings) June 22, 2018--S&P Global Ratings today said that a plan by Woori Bank (A/Stable/A-1) to adopt a holding group structure could put pressure on the bank's capitalization. This is particularly if the group aggressively expands its non-banking businesses, either inorganically or organically. However, we expect the group to maintain a controlled growth appetite and continue to improve its risk management, given its track record in recent years. The ratings on Woori Bank are therefore not affected. Woori Bank's board of directors agreed to adopt a holding company structure on June 19, 2018. The proposal is subject to approval by the regulator and shareholders. If the shareholders approve the plan in the general shareholders' meeting scheduled in December 2018, Woori Financial Group (WFG) will become the holding company around February 2019 after a 1:1 share swap with Woori Bank. Woori Bank and other non-banking entities of the group will become subsidiaries of...

Bulletin