Korean banks face fresh pressure after Moody's downgrade
US dollar funding challenges have eased but default risks from SMEs on the rise
Moody's Investors Service lowered the bank financial strength ratings (BFSR) of South Korea's big four banks - Kookmin, Woori, Shinhan Bank and Hana Bank - to 'C-' from 'C' last month due to concerns about small-to medium-size enterprise (SME) exposures. "The financial difficulties of SMEs represent a threat to the banks. Delinquencies in this segment - which account for between 25% and 45% of loan books - are rising," said Moody's in its May review, adding non-performing loan (NPL) ratios more
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