...Outlook: Stable The stable outlook on the long-term issuer credit rating (ICR) on Kookmin Bank reflects Standard & Poor's Ratings Services' view that the bank and parent group KB Financial Group's (KBFG: not rated) overall credit profile is likely to remain stable despite a challenging operating environment. Kookmin faces pressure on its net interest margins due to competition and the Korean government's borrower-friendly initiatives to lower banks' lending rates for small and midsize enterprises (SMEs) and households amid a low interest rate environment. There is also ongoing pressure on corporate sectors, such as real estate and construction, shipbuilding, and shipping, and potential pressure on the quality of household debt, in our view. Nonetheless, we believe Kookmin will likely manage a potential rise in credit costs with its current preprovisioning profit levels in light of its efforts over the past several years to tighten its underwriting standards, write off bad loans, and build...
