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(Photo=OK Savings Bank) |
[Alpha Biz= Reporter Kim Minyoung] Korea Ratings has announced on the 28th that it has adjusted the corporate credit rating of OK Savings Bank from 'BBB+/Negative' to 'BBB/Stable'.
In relation to this, Korea Ratings explained, "The risks associated with real estate project financing (PF) are factors that burden financial soundness," and "We have reflected the significant deterioration in profitability due to the decline in net interest margin and increase in provision costs."
As of the end of the first quarter of this year, OK Savings Bank's real estate PF-related loans amounted to KRW 2.353 trillion, accounting for 17.3% of total loans and 134.7% of equity. In particular, the high proportion of risky bridge loans, totaling KRW 1.855 trillion, was pointed out.
Furthermore, as of the end of the first quarter, the non-performing loan ratio and fixed non-performing loan ratio for real estate PF-related loans were 83.1% and 20.2%, respectively, and the delinquency rate was 18.0%, showing a significant increase compared to the end of 2022.
AlphaBIZ Kim Minyoung(kimmy@alphabiz.co.kr)
