S&P rates Kexim bonds A

Standard & Poor's said it assigned an A senior unsecured foreign-currency debt rating to the Export-Import Bank of Korea's (Kexim) Ps. 1.2 billion global floating-rate bonds due Jan. 28, 2013.

The bonds have a coupon of Mexican interbank rate plus 30 basis points.

Kexim's (foreign-currency A/stable/A-1) issuer credit ratings are based on its public policy role as Korea's (foreign-currency A/stable/A-1; local-currency A+/stable/A-1) official export credit agency.

"The ratings also incorporate strong direct support from the government, including capital injections and the provision of loans," S&P credit analyst Takahira Ogawa said in a written statement.

The ratings consider the government's legal obligation to maintain the bank's solvency, S&P said.

"Although the bank has never recorded a loss, and profit levels in the past two years have been historically high, the bank's profitability has generally been low. This is because profit maximization is not Kexim's main objective, considering its mandate as a state-owned bank with a public policy role," Ogawa noted.

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