RPT-Fitch rates Korea Development Bank's senior unsecured USD notes 'AA-(EXP)'
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Sept 10 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has assigned Korea Development Bank's (KDB) proposed long-term senior unsecured USD-denominated notes an expected 'AA-(EXP)' rating.
The notes will be issued under the bank's existing USD3bn shelf programme, last updated on 24 June 2013 at the US Securities and Exchange Commission. The tenor would 5.5 years and the issue size has yet to be determined.
The proceeds will be used for KDB's general operations, including repayment of maturing debt and other obligations. The final rating is contingent upon the receipt of final documents conforming to the information already received.
Key Rating Drivers
The notes are rated at the same level as KDB's Long-Term Foreign Currency Issuer Default Rating as they will constitute direct, unconditional, unsecured and unsubordinated obligations of the bank. The bank's IDR is equalised with South Korea's rating, reflecting de facto solvency guarantee by the government for KDB as per Article 44, KDB Act. KDB, one of South Korea's key policy banks, is effectively 100% owned by the government (9.7% directly and 90.3% through Korea Finance Corporation (KoFC, AA-/Stable))
The ratings of KDB would be directly affected by changes to South Korea's ratings or to the solvency guarantee under the KDB Act. Fitch does not expect any significant change to either.