January 7, 2014 / 2:51 AM / in 4 years

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

SEOUL/SINGAPORE, January 06 (Fitch) Fitch Ratings has 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 size of the note issue has yet to be determined. The notes will be issued in two tranches - floating rate and fixed rate - under the bank's existing U.S. shelf programme, which was last updated on 11 July 2013 at the US Securities and Exchange Commission. The proceeds from the new issue will be used for the bank's general purposes, including rolling over and/or repaying maturing foreign-currency 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 (68.0% directly, 16.1% through Bank of Korea, and 15.9% through Korea Finance Corporation (AA-/Stable)). 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. KEXIM is a key policy bank in South Korea. The bank was established in 1976 under the Export-Import Bank of Korea Act to provide export, import and overseas investment credit. Contact: Primary Analyst Mihwa Park Associate Director +65 6796 7238 Fitch Ratings Singapore Pte Ltd 6 Temasek Boulevard #35-05 Suntec Tower Four Singapore 038986 Secondary Analyst Heakyu Chang Director +82 2 3278 8363 Committee Chairperson Tim Roche Senior Director +612 8256 0310 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com; 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 15 August 2012, are available at www.fitchratings.com. Applicable Criteria andALL 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 PUBLIC WEBSITE '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.

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