South Korean banks projected the credit risks of South Korean companies to rise in the third quarter due to sluggish domestic demand and the strengthening of the South Korean won, central bank data showed Wednesday.

An index measuring larger companies’ credit risks came in at 19 for the July-September period, the highest level since the first quarter of 2009, when it reached 19 in the aftermath of the global financial crisis, according to the quarterly survey of 16 local banks conducted by the Bank of Korea. Compared with the previous quarter, it rose by 3 points.

The on-quarter rise was credited to worries that the won’s appreciation against the U.S. dollar may hurt profitability of exporters and cause credit crises for several conglomerates.

“The level did rise to the highest level since the first quarter of 2009, but it does not translate as a significant deterioration since the index ranges from a minimum of minus 100 to a maximum of 100,” a BOK official said. (Yonhap)