SEOUL, Feb. 9 (UPI) -- International ratings service Moody's Investors Service Monday downgraded credit ratings for eight South Korean banks, hurt by lack of investments.
The banks involved are the Kookmin Bank, Shinhan Bank, Woori Bank, Hana Bank, Industrial Bank of Korea, National Agricultural Cooperative Federation, Korea Development Bank (KDB) and Export-Import Bank of Korea. All were given a stable outlook except the Korean Development Bank, which was given a negative outlook, Yonhap News Agency reported.
Moody's gave an "A2" rating to the foreign currency long-term senior debt ratings for the eight banks, the news agency reported.
The rating changes "consider the appropriateness of the banks' foreign currency debt ratings vis-a-vis the Korean government's given the banks' heavy dependence on government support to secure external funding," Moody's said in a statement.
KDB's outlook was negative due to planned privatization of the government-run bank. At the same time, South Korean banks have been hurt by a shortage in dollars amid a global financial crisis and economic downturn in the United States.
