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Rpt fitch affirms woori finance holdings at bbb+stable


(Repeat for Additional Subscribers)June 7 (The following statement was released by the rating agency)Fitch Ratings has affirmed Korea-based Woori Finance Holdings' (WFH) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB+'. The Outlook is Stable. Fitch has also affirmed WFH's Viability Rating (VR) at 'bbb-'. A full rating breakdown is provided below. KEY RATING DRIVERS AND SENSTIVITIES - IRDs, Support Rating and Support Rating Floor WFH's IDRs are backed by its flagship bank subsidiary Woori Bank's (A-/Stable) IDRs. The latter reflect Fitch's belief of an extremely high propensity of the South Korean government (AA-/Stable) to support Woori Bank. The government owns a 57% stake in WFH through Korea Deposit Insurance Corporation (KDIC). The holding company wholly owns Woori Bank and two regional banks. It also has non-bank financial subsidiaries. It does not have any direct banking operations. WFH's Long-Term IDR, Support Rating, Support Rating Floor are one notch lower than Woori Bank's. This is because WFH will only benefit from the government ownership/control and support if such support is directed at its subsidiary banks. The agency believes that the key objective of the regulatory framework is to protect depositors at, and ensure the viability of, subsidiary banks.

A substantial reduction of the government's stake may trigger a negative rating action on WFH's state support-driven ratings. The government has attempted to sell the controlling stake in the holding company for a decade but has failed to do so. A change in the ability of the Korean authorities to provide support may result in a change in these ratings. Global regulatory initiatives aimed at reducing implicit government support available to banks may cause downward pressure on the ratings.

KEY RATING DRIVERS AND SENSTIVITIES - VR WFH's VR is also one notch lower than Woori Bank's to reflect the holding company's high double leverage, and the weaker credit profile of other subsidiaries, including the regional banks and brokerage operation relative to Woori. Its common-equity double leverage ratio has been high at 128% level for years. Fitch does not expect the leverage to improve significantly. The holding company cannot offer new rights issue because KDIC cannot inject new capital into WFH. KDIC can inject capital only to a failed bank as per its governing laws. As such, WFH has relied on debt funding to support its subsidiaries, to expand and to meet its own cash flows, therefore weakening its leverage. A change to the flagship bank subsidiary's VR or a significant change in the double leverage would directly affect the holding company's VR. WFH's ratings are:

Long-Term Foreign-Currency IDR affirmed at 'BBB+'; Stable OutlookShort-Term Foreign-Currency IDR affirmed at 'F2'Viability Rating affirmed at 'bbb-'Support Rating affirmed at '2'Support Rating Floor affirmed at 'BBB+'

Rpt rencana merger mpm finance tidak berdampak pada peringkatnya


(Repeat for additional subscribers)April 3 (The following statement was released by the rating agency)Fitch Ratings stated that plans for a merger between PT Mustika Pinasthika Finance Partners (MPM Finance) and PT Sasana Artha Finance (SAF) does not have an impact on the national ranking Period The length of the MPM Finance at ' A-'/Stabil. (idn) This reflects Fitch's expectations will be ongoing support from its parent company--PT Mitra Pinasthika Mustika (MPM; ' A (idn) '/Stabil).

MPM Finance is a company that focuses on financing multifinance car the former, while the SAF's focus on the financing of the motor. the 60% stake owned by SAF MPM and 40% owned by JACCS co., Ltd., a company based in financing Japan with the core business in the consumer credit (credit cards and financing the consumer). JACCS will deposit capital amounting to 510 billion rupiah to be a 40% stake holder's MPM Finance after the merger. MPM will remain the holder of the majority stake with 60% ownership of the MPM Finance.

This Merger is part of a strategy to strengthen its position in the MPM business automotive, enlarging the economies of scale, cost efficiency, business monitoring efficient, synergy business and product diversification.

After the merger transaction is carried out, the company will still be called MPM Finance, and still will be a subsidiary with an interest strategic for MPM MPM share ownership, although reduced to 60% of the 100%. Fitch believes the operation MPM Finance will remain supported by MPM has the automotive distribution business has strong enough. JACCS will engage actively in operational and management MPM Finance with pointing out a few key executives. Technical and financial support of JACCS will provides benefits of credit profile MPM Finance. Fitch will examine back rank MPM Finance based on support, in line with the development of the structure of stock ownership with the potential support of JACCS In addition to the ongoing support of MPM.