S&P rates Kookmin Bank bonds A

Standard & Poor's said it assigned A ratings to Kookmin Bank's (A/stable/A-1) third series senior unsecured samurai bonds, with a 1.9% coupon and maturity date of July 27, 2012, and fourth series senior unsecured samurai bonds, with a 1.97% coupon and maturity date of July 26, 2013.

Ratings reflect the issuer's strong market position as Korea's largest commercial bank and a core operating bank subsidiary of KB Financial Group and its relatively low concentration risk related to single obligors, according to the agency.

Ratings are constrained by potential credit risks posed by the increased leverage in the private sector amid a potential interest rate increase in Korea, the agency noted.

Kookmin's relatively large exposure to the construction and real-estate industries, including residential project financing, whose creditworthiness is under pressure, could also weigh on the bank's asset quality, S&P said.

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