Suhyup spun off from NFFC and formed a separate entity on Dec. 1, 2016. Suhyup's capitalization has strengthened due to a capital injection by NFFC after the reorganization. Suhyup will not inherit joint and several liability from NFFC, given that it has undertaken appropriate legal processes in the past month, thus reducing significant credit concentration risk. We are raising our ratings on Suhyup to 'A/A-1' and revising upward its SACP to 'bbb-'. At the same time, we are removing the ratings from CreditWatch with positive implications. The stable outlook on Suhyup reflects our view that the bank will maintain an adequate level of capitalization along with manageable growth appetite and asset quality. We also expect the bank to have a
