S&P rates Kexim notes A-

Standard & Poor's said it assigned its A- senior unsecured foreign currency debt rating to the Export-Import Bank of Korea's (Kexim) (foreign currency A-/stable/A-2, local currency --/--/A-1) notes due 2009. The $500 million issue will be drawn down from Kexim's $4 billion euro medium-term notes program, also rated A-.

S&P said the issuer credit ratings on Kexim are based on its public policy role as Korea's official export credit agency, providing financial facilities in support of the Korean government's (foreign currency rating A-/stable/A-2, local currency rating A+/stable/A-1) export-led growth strategy, and foreign trade and investment policies. The bank is owned and controlled by the government.

The ratings also incorporate the strong direct support from the Korean government, including capital injections and provision of loans. Since 1998, Kexim has enjoyed repeated capital injections, totaling close to Korean won 1.9 trillion from the government. The ratings also take into account the government's legal obligation to maintain the bank's solvency.

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