Jeonbuk Bank credit rating upgraded to A3 from Baa1 by Moody's

[Photo provided by JB Financial Group]

JB Financial Group’s flagship unit Jeonbuk Bank received an upgrade in its long-term debt to A3 from Baa1 by Moody’s Investors Service, the group said Wednesday.

The bank’s improved asset quality and profitability from well-diversified investment portfolio were cited as the reason for its upgrade, according to JB Financial.

Moody’s also said JB Financial’s stock swap with its subsidiary Kwangju Bank will make it easy for the group to provide financial support for subsidiaries and improve management efficiency.

It hinted it could also bump up A3 ratings in the two lenders under the group - Jeonbuk and Kwangju Bank - if performance keeps up.

JB Financial recently announced that it will exchange stocks with Kwangju Bank to own full stake in the regional lender.

The group also is planning to keep optimizing its asset portfolio and expanding profit to further raise the credit rating and global competitiveness of subsidiaries after successfully completing the planned stock exchange deal, said an official at JB Financial.

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