Woori Bank's Proposed Basel III Tier 1 Subordinated Notes Rated 'BB+'

HONG KONG (S&P Global Ratings) May 8, 2017--S&P Global Ratings today said that it has assigned its 'BB+' long-term issue rating to the proposed U.S. dollar-denominated Basel III Tier-1 subordinated notes to be issued by Woori Bank (A/Stable/A-1). The notes will be drawn down from the bank's junior subordinated tranche under its US$7 billion global medium-term note program. The rating is subject to our review of the final issuance documentation. The subordinated notes are intended as Basel III Tier 1 regulatory capital for Woori, and will be direct, unsecured, and subordinated to senior creditors' claims. We note the inclusion of a writedown clause in the event of nonviability. If the bank is designated an "insolvent financial institution" by Korean regulators,

...HONG KONG (S&P Global Ratings) May 8, 2017--S&P Global Ratings today said that it has assigned its '##+' long-term issue rating to the proposed U.S. dollar-denominated Basel III Tier-1 subordinated notes to be issued by Woori Bank (A/Stable/A-1). The notes will be drawn down from the bank's junior subordinated tranche under its US$7 billion global medium-term note program. The rating is subject to our review of the final issuance documentation. The subordinated notes are intended as Basel III Tier 1 regulatory capital for Woori, and will be direct, unsecured, and subordinated to senior creditors' claims. We note the inclusion of a writedown clause in the event of nonviability. If the bank is designated an "insolvent financial institution" by Korean regulators, then the full principal amount will be permanently written down to zero and the notes will be canceled; and the payment of principal and interest will be irrevocably waived. The '##+' issue rating is three notches below Woori's '###+'...

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