The ratings on Citibank Korea Inc. (A-/Watch Neg/A-2) reflect expected support from its parent bank, Citibank N.A. New York, NY (Citibank N.A.; A+/Stable/A-1), which owns 99.95% of the bank. The ratings also reflect Citibank Korea's good capitalization and its adequate asset quality on a stand-alone basis. Offsetting factors include the bank's relatively weak market position, modest profitability, and its slow integration with KorAm bank. Citibank Korea is a strategically important subsidiary of Citibank N.A.'s emerging market strategy, as evidenced by the parent's large investment in Citibank Korea and its non-financial support. Given the downgrade of Citibank N.A. on Dec. 19, 2008, we expect the parent's ability to support its strategically important subsidiary to have weakened. However, Standard&Poor's Ratings
