Summary: Citibank Korea Inc.

Highly strategic subsidiary of the Citi group Strong capitalization Relatively limited exposure to risky industries Relatively small market share Moderate profitability Potential pressure on asset quality from high household leverage The placement of Citibank Korea Inc. (CKI) on CreditWatch with positive implications reflects the same placement of its U.S. affiliate, Citibank N.A., which is the main operating entity of the Citi group, with regard to Standard&Poor's Ratings Services' review of the resolution regime for U.S. banks. We placed Citi's operating subsidiaries on CreditWatch with positive implications because we may incorporate a second notch of credit support for additional loss-absorbing capacity (ALAC), depending on the Federal Reserve (Fed)'s final rule on total loss-absorbing capacity (TLAC). If this rule allows

...The placement of Citibank Korea Inc. (CKI) on CreditWatch with positive implications reflects the same placement of its U.S. affiliate, Citibank N.A., which is the main operating entity of the Citi group, with regard to Standard & Poor's Ratings Services' review of the resolution regime for U.S. banks. We placed Citi's operating subsidiaries on CreditWatch with positive implications because we may incorporate a second notch of credit support for additional loss-absorbing capacity (ALAC), depending on the Federal Reserve (Fed)'s final rule on total loss-absorbing capacity (TLAC). If this rule allows inclusion of certain liabilities excluded in the Fed's notice of proposed rule-making (NPR), of which Citi has considerable amounts outstanding, our ALAC ratio for Citi may warrant a second notch of extraordinary external support for ALAC. Given CKI's status as a "highly strategic" subsidiary of the Citi group, and the group's capacity and willingness to provide significant support to CKI if...

Summary