SEOUL, South Korea--(BUSINESS WIRE)--JB Financial Group (KRX:175330) announced on July 25 that Moody’s Investors Service has upgraded the credit ratings of its banking unit Jeonbuk Bank from Baa1 to A3 (long-term deposit).
The US credit rating agency raised Jeonbuk Bank’s credit ratings one notch up to reflect its improved asset quality and capitalization. Moody’s views the bank’s asset portfolio restructuring efforts have helped the overall improvement in asset quality and profitability which ultimately led to the strengthening of its capitalization.
The rating actions also follow the share swap announcement made by JB Financial Group and Kwangju Bank in July 13. Moody’s expressed positive view on the share swap deal saying that JB Financial Group’s double leverage ratio will show modest improvement which implies the holding company’s capability to support its subsidiaries elevating their business efficiency. Depending on the improving trend in financial stability, the rating firm hinted it could consider further rating upgrades of both Jeonbuk Bank and Kwangju Bank, both now rated at A3.
“After successfully completing our planned share swap deal with Kwangju Bank, we will continue to optimize our asset portfolio in order to improve asset quality and capital ratio. By so doing, we will ramp up efforts to further strengthen our credit outlook and competitiveness both at home and abroad.” said a JB Financial Group official.