S&P rates Korea Development notes A

Standard & Poor's said it assigned an A rating to Korea Development Bank's (foreign-currency A/stable/A-1) planned issuance of $1 billion in senior unsecured notes.

S&P said ratings are based on the bank's public policy role as the primary governmental financial institution to 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," S&P credit analyst Takahira Ogawa said in a written statement.

Ratings also reflect the government's legal obligation to maintain the bank's solvency, the agency said.

"This statutory obligation, however, is only a sign of the government's commitment to support [Korea Development Bank] rather than a direct guarantee of timely payment for all of the bank's obligations," Ogawa said.

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