The long-term rating on Woori Bank was upgraded to 'BB+' from 'BB' on Sept. 25, 2002, reflecting the recent improvement in the financial profile of the Korean corporate sector, which, along with the adoption of more disciplined credit practices by the bank, should help it to profit from its huge customer base, which is the second largest among Korean banks. The ratings on Woori Bank are constrained by the bank's concentrated exposure to large corporates in Korea ('chaebol'), which are still highly leveraged. Woori Bank's asset quality has improved over the past two years, with problem loans (loans classified as precautionary or below) declining to 7.59% at June 2002 from 9.54% at the end of 2001. Following the hiring of
