On March 20, 2003, Standard&Poor's raised the long-term and short-term ratings on Woori Bank to 'BBB-' from 'BB+' and 'A-3' from 'B', respectively, based on the progress the bank has made in enhancing its asset quality, long-term benefits from its more disciplined credit practices, and heightened earnings potential through cross selling the products of its sister companies. Woori Bank has the second-largest branch network among Korean commercial banks, which should enable the bank to explore new revenue sources. The ratings on the bank are constrained by growing concerns over household indebtedness, uncertainties surrounding the domestic economy, and its remaining exposure to Korean chaebols. Woori Bank's asset quality has improved over the past two years, with problem loans (loans
