The long-term rating on Hanvit Bank was upgraded to 'BB' from 'BB-' on May 2, 2002, reflecting the recent recovery in the domestic economy, which, along with the adoption of more disciplined credit practices by Hanvit, should make it easier for the bank to take advantage of its huge customer base, which is the second largest among Korean banks. The outlook on the long-term rating remains positive. The ratings on Hanvit are still constrained by the continuing weakness of large Korean corporates, or chaebol, to which the bank still has concentrated large exposure. Hanvit's asset quality has improved in the past two years. Problem loans (loans classified as precautionary or below) substantially declined in 2001 to 8.94% from 20.30% a
