HONG KONG (Standard&Poor's) June 11, 2009--Standard&Poor's Ratings Services today assigned its 'BBB+' rating to Woori Bank's (Woori; A-/Negative/A-2) proposed lower tier II subordinated notes due April 2015. The proposed coupon rate is 7.63%. The new notes are being issued in connection with the bank's offer to exchange new notes for its outstanding US$400 million 5.75% lower tier II subordinated notes due March 13, 2014. The rating on the subordinated notes is subject to final documentation. The one-notch differential between Woori's counterparty credit rating and the rating on the proposed notes mainly reflects the risks associated with the proposed subordinated notes. Subordination adversely affects the ultimate recovery prospects of subordinated obligation holders in a bankruptcy, since claims
