S&P assigns Korea Development Bank bonds A

Standard & Poor's said it assigned its A senior unsecured long-term foreign currency debt rating to Korea Development Bank's (foreign currency A/stable/A-1, local currency A-1) proposed dollar bonds.

The duo-tranche issue is estimated to amount to $1 billion, the agency said, adding that its issuer credit ratings on Korea Development Bank are based on the bank's public policy role as the primary governmental financial institution that extends medium- to long-term financial facilities to support the industrial policy objectives of the government of the Republic of Korea (foreign currency A/stable/A-1, local currency A+/stable/A-1).

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

The ratings also reflect the government's legal obligation to maintain the bank's solvency, the agency added.

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