S&P rates Korea Development Bank debt 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) series 25 Samurai bond amounting to ¥30 billion, with a 1.64% coupon rate and maturing June 1, 2012, and its series 1 Samurai floating-rate bond amounting to ¥20 billion, with a six-month Libor + 18 basis points coupon rate and maturing June 1, 2012.

The ratings 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, the agency said, along with the government's legal obligation to maintain the bank's solvency.

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