Hana Bank’s German branch obtains Moody’s Aa3 rating
Hana Bank’s German subsidiary has earned a Moody’s credit rating of Aa3, according to the bank Wednesday. Moody’s is one of the top three global credit rating agencies.
The German subsidiary wholly invested by Seoul-based Hana Bank is the first Korean bank with a presence in Europe to obtain the rating.
The subsidiary in Frankfurt has since 1970 been providing financing to German corporate clients and Korean firms operating there.
The Frankfurt subsidiary holds a license to operate a bank in the European Union.
Lee It plans to expand Hana Bank’s presence throughout Europe, based on its sales network, as enabled by the EU Single Passport Rule, whereby branches can be opened in other EU member states.
Moody’s said the Frankfurt subsidiary’s Aa3 rating is buttressed by stable connections with Hana Bank Seoul’s business structure, credit and liquidity risk management.
An official at Hana Bank in Germany said the Aa3 rating is significant, as the Frankfurt subsidiary was the first Korean bank in Europe to have obtained the fourth-highest rating.
“We will strengthen our competitiveness, as aided by close cooperation with subsidiaries in Germany. More business opportunities will be created with global financial entities. Financing costs will be lowered through diversification of financing channels,” the official said.
Hana Bank received the same rating, Aa3, from Moody’s last August, up from the previous rating of A1.
The ratings agency highly assessed Hana Bank’s improvements in borrowing structures despite economic uncertainties from within the country and abroad.
“Asset soundness, capital adequacy and profitability were all fortified through comprehensive asset debt management,” the agency said at the time.