Highly strategic subsidiary of the Citi group Strong capitalization Relatively limited exposure to risky industries Relatively small market share Moderate profitability Potential pressure on asset quality from high household leverage The placement of Citibank Korea Inc. (CKI) on CreditWatch with positive implications reflects the same placement of its U.S. affiliate, Citibank N.A., which is the main operating entity of the Citi group, with regard to Standard&Poor's Ratings Services' review of the resolution regime for U.S. banks. We placed Citi's operating subsidiaries on CreditWatch with positive implications because we may incorporate a second notch of credit support for additional loss-absorbing capacity (ALAC), depending on the Federal Reserve (Fed)'s final rule on total loss-absorbing capacity (TLAC). If this rule allows
