The credit rating of AO Woori Bank (hereinafter, Woori Bank, or the Bank) is based on its a- standalone creditworthiness assessment (SCA) and the very high likelihood of the parent entity, which has high creditworthiness, providing support to the Bank. The Bank’s SCA is characterized by strong capital adequacy, a satisfactory risk profile assessment, adequate liquidity and funding position, and an adequate business profile assessment.

As of January 1, 2022, the Bank ranked 114th by size of assets and 140th by size of equity among Russian banks. The Bank is part of Woori Financial Group Inc. (hereinafter, the Supporting Entity, SE, or the Group), one of the largest financial organizations in the world.


Very high likelihood of support fr om the Supporting Entity. In ACRA’s opinion, if necessary the SE will provide the Bank with sufficient short-term and long-term funding and capital injections in view of the following:

  • The creditworthiness of the SE is high compared to the standalone creditworthiness of the Bank, and the scope of the Bank’s business is not a factor that could lim it the effectiveness of potential support;

  • The Group exercises complete shareholder and operational control over the Bank (the Group determines the corporate risk management procedures and standards applied by the Bank taking into account Russian law);

  • The Bank and the Group operate under the same brand and therefore a possible default of the Bank may lead to significant reputational risks for the Group.

The Agency takes into account the fact that the SE operates in a jurisdiction that differs from the jurisdiction of presence of the Bank, which makes the possibility of providing support dependent on the freedom of movement of capital between the countries. In addition, the termination of the Bank’s activities or its deconsolidation will not lead to the emergence of critical risks for the implementation of the group-wide strategy.

Due to the above, ACRA determines the Bank’s credit rating as AAA(RU).

The adequate business profile is based on the strong assessment of the ownership structure, and moderate diversification of operations coupled with limited positions in the Russian banking services market. ACRA highly assesses the quality of the Bank’s corporate governance, given the degree of control exercised by the SE. The Bank’s strategy covers a three-year period and determines the overall nature of its operations — servicing corporate clients who are mostly subsidiaries of South Korean companies.

ACRA assesses the Bank’s capital position as strong, taking into account the high N1.2 capital adequacy ratio (18.09% as of January 1, 2022), which allows the Bank to withstand growth in the cost of credit risk by more than 500 bps. Woori Bank demonstrates a strong ability to generate capital — the averaged capital generation ratio (ACGR) was 488 bps for 2016 to 2020. The average net interest margin (NIM) for the past three years was 4.4%, while the cost-to-income (CTI) ratio was 43.8%, which is generally in line with peer banks. Woori Bank does not pay dividends.

The Bank’s satisfactory risk profile assessment stems from the high quality of its loan portfolio, which is highly concentrated. As of September 30, 2021, the Bank’s loan portfolio amounted to around RUB 10 bln, with more than 60% of the portfolio concentrated on the 10 largest borrowers. There is no overdue or problem debt on Woori Bank’s balance sheet. At the same time, the Bank resorts to covering potential loan debt risks using collateral in the form of guarantees from the parent bank or companies with high credit quality. The Bank holds a substantial amount of securities, which, given the calculation specifics, result in a heightened level of market risk. ACRA took this into account in its analysis, however, it should be noted that the credit quality of the issuers of these securities is high.

The adequate liquidity and funding position is based on the high volume of liquid and highly liquid assets coupled with a considerable concentration of funding sources. According to the calculation of the short-term liquidity shortage indicator, under the base case scenario, the Bank has a liquidity surplus of around RUB 6.8 bln, while under the stress scenario the liquidity deficit amounts to less than 1% of liabilities. The long-term liquidity shortage indicator is 102%. The main source of the resource base is funds from legal entities, which amount to around 66% of liabilities. Dependence on the funds of individual depositors is assessed as high, with the share of the largest depositor at 26%, and the 10 largest depositors at more than 75%. Concentration on funds of legal entities is taken into account in the assessment of concentration on the funds of the largest creditors, and therefore the Agency has not lowered the funding assessment in this area.


  • SE maintaining shareholder and operational control;

  • Maintaining business profitability;

  • Maintaining the current liquidity position.


The Stable outlook assumes that the credit rating will most likely remain unchanged within the 12 to 18-month horizon.

A negative rating action may be prompted by:

  • The Group’s declining interest in developing its business in Russia;

  • Significant deterioration of the financial standing of the SE.


SCA: a-.

Adjustments: none.

Support: ACRA is of the opinion that if necessary, the Supporting Entity will be able to provide the Bank with extraordinary support in the form of capital and/or liquidity. Taking into account the support factors, the Bank’s credit rating is set at AAA(RU).


No outstanding issues have been rated.


The credit rating has been assigned under the national scale for the Russian Federation based on the Methodology for Credit Ratings Assignment to Banks and Bank Groups under the National Scale for the Russian Federation, Methodology for Analyzing Rated Entities Associated with a State or a Group, and the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities.

A credit rating has been assigned to AO Woori Bank for the first time. The credit rating and its outlook are expected to be revised within one year following the publication date of this press release.                                      

The credit rating was assigned based on data provided by AO Woori Bank, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS financial statements of AO Woori Bank and the financial statements of AO Woori Bank drawn up in compliance with Bank of Russia Ordinance No. 4927-U dated October 8, 2018. The credit rating is solicited, and AO Woori Bank participated in its assignment.

In assigning the credit rating, ACRA used only information, the quality and reliability of which was, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.

ACRA provided no additional services to AO Woori Bank. No conflicts of interest were discovered in the course of credit rating assignment

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