Equity Content Assessment Of Korean Bank And Insurance Hybrids Unchanged Following Recent Call Event

S&P Global Ratings' equity content assessment of hybrid capital instruments issued by rated Korean banks and insurers remains unchanged. In early November, midsize insurer Heungkuk Life Insurance Co. Ltd. (unrated) reversed a hybrid noncall decision. This has raised some questions about Korean bank and insurance hybrid issuers' ability to manage the timing of refinancing by choosing not to call at optional call dates. We think it's premature to assume from Heungkuk's actions that Korean bank and insurance hybrid issuers do not have sufficient flexibility to choose not to call their hybrids. Accordingly, we are maintaining the current equity content classifications on hybrids issued by rated banks and insurers. We expect that Korean regulators will continue to encourage and oversee prudent

...- Heungkuk Life reversed a hybrid noncall decision in early November. - We haven't lowered our equity content assessment of hybrid capital instruments issued by rated Korean banks and insurers. - We'll continue to monitor market developments to assess whether future events affect the flexibility of Korean banks and insurers to manage hybrid call decisions. S&P Global Ratings' equity content assessment of hybrid capital instruments issued by rated Korean banks and insurers remains unchanged. In early November, midsize insurer Heungkuk Life Insurance Co. Ltd. (unrated) reversed a hybrid noncall decision. This has raised some questions about Korean bank and insurance hybrid issuers' ability to manage the timing of refinancing by choosing not to call at optional call dates. We think it's premature to assume from Heungkuk's actions that Korean bank and insurance hybrid issuers do not have sufficient flexibility to choose not to call their hybrids. Accordingly, we are maintaining the current...

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