Market Overview

Moody's Upgrades Credit Ratings of Jeonbuk Bank to A3


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.

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