Fitch rates Kookmin covered bonds AAA

Fitch Ratings said it assigned Kookmin Bank's series 2022-1 mortgage covered bonds an AAA rating. This brings Kookmin's total outstanding issuance of covered bonds to €1.5 billion, equivalent to KRW 2.046 trillion.

Series 2022-1 is a 3.6-year €500 million fixed-rate bond due in January 2026 that benefits from a 12-month extension period. The bonds were issued under Korea's covered bond legislation. The covered bond holders benefit from dual recourse against the cover assets and an unsecured and unsubordinated recourse against Kookmin.

“The AAA rating on the mortgage covered bonds is based on Kookmin's long-term issuer default rating (IDR) of A with a stable outlook, the various uplifts above the IDR granted to the program and the overcollateralization (OC) protection provided through the program’s asset percentage (AP),” Fitch said in a press release.

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