SEOUL/SINGAPORE, January 20 (Fitch) Fitch Ratings has assigned
Bank's (KDB; AA-/Stable) proposed long-term senior unsecured
yen-denominated notes a 'AA-' rating. KDB will issue JPY35bn of
fixed-rate notes and JP15bn of five-year fixed-rate notes.
The proceeds will be used for KDB's general operations,
including repayment of
maturing debt and other obligations.
KEY RATING DRIVERS
The notes are rated at the same level as KDB's Long-Term
Default Rating as they will constitute direct, unconditional,
unsubordinated obligations of the bank. The bankâ€™s IDR is
equalised with South
Korea's rating, reflecting the de facto solvency guarantee
provided by the
government to KDB as per Article 44 of the KDB Act. KDB is
owned by the government (9.7% directly and 90.3% through Korea
Corporation (KoFC, AA-/Stable))
The ratings of KDB would be directly affected by changes to
ratings or to the solvency guarantee under the KDB Act. Fitch
does not expect
any significant change to either.
KDB is one of South Koreaâ€™s key policy banks. The South Korean
August 2013 proposed a plan to halt KDBâ€™s privatisation,
though the plan is
subject to the National Assemblyâ€™s approval.
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Applicable criteria "Global Financial Institutions Rating
Criteria", dated 15
August 2012, are available at www.fitchratings.com.
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