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Fitch Rates KEXIM's Senior Unsecured USD Notes 'AA-(EXP)'
August 5, 2014 / 5:42 AM / 3 years ago

Fitch Rates KEXIM's Senior Unsecured USD Notes 'AA-(EXP)'

(The following statement was released by the rating agency) SEOUL/HONG KONG, August 05 (Fitch) Fitch Ratings has today assigned the Export-Import Bank of Korea's (KEXIM; AA-/Stable) proposed long-term senior unsecured US dollar-denominated notes an expected rating of 'AA-(EXP)'. The notes will be issued in two tranches under the bank's existing U.S. shelf programme, which was last updated on 1 August 2014 at the US Securities and Exchange Commission. While the specific sizes of the tranches have yet to be determined, the tenors will be five years and 12 years respectively. The proceeds from the new issue will be used for the bank's general operations, including extending foreign currency loans and repaying 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 KEXIM's Long-Term Foreign Currency Issuer Default Rating (IDR) as they will constitute direct, unconditional, unsecured and unsubordinated obligations of the bank. The bank's IDR is equalised with South Korea's rating to reflect the de facto solvency guarantee. According to Article 37 of the Export-Import Bank of Korea Act, the government is responsible for any losses incurred by the bank but not covered by the bank's reserves. KEXIM is effectively 100%-owned by the state (70.1% directly, 15.0% through Bank of Korea, and 14.9% through Korea Finance Corporation (AA-/Stable) at end-July 2014). RATING SENSITIVITIES The ratings of KEXIM would be directly affected by changes to South Korea's ratings or to the solvency guarantee under the KEXIM Act. Fitch does not expect any significant change to either. As a key policy bank, KEXIM is mandated to provide export, import and overseas investment credit. Primary Analyst Heakyu Chang Director +82 2 3278 8363Fitch Australia Pty Ltd, Korea Branch 9F, 97 Uisadang dae-ro Youngdeungpo-gu Seoul 150-737 Korea Secondary Analyst Jonathan Cornish Managing Director +852 2263 9901 Committee Chairperson Tim Roche Senior Director +61 2 8256 0310 Media Relations: Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: wailun.wan@fitchratings.com. Additional information is available on www.fitchratings.com Applicable criteria, "Global Financial Institutions Rating Criteria", dated 31 January 2014, are available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S FREE WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Fitch Australia Pty Ltd holds an Australian financial services licence (AFS licence no. 337123) which authorises it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001.

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