S&P: Korea Development Bank view negative

Standard & Poor's said it revised the outlook on Korea Development Bank (foreign-currency A/stable/A-1) to negative from stable.

The revision is based on plans to take the bank private, which would reduce government support, according to the agency. The bank would be split into two parts, with a fund that would continue to provide public policy finance and a bank that would operate to maximize profits, S&P said.

Ratings have been 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).

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