Fitch rates Korea Development Bank bonds A+

Fitch Ratings said it assigned an expected rating of A+ to Korea Development Bank's planned issuance of Japanese yen bonds 28 series and Japanese yen floating-rate bonds second series.

Both bonds come with a clause for the right of early redemption due in August 2010. The ratings are in line with that of the Korean sovereign (rated A+ with stable view), which guarantees such obligations. The final rating is contingent upon receipt of final documents.

The ratings also are in line with the bank's long-term issuer default rating of A+, the agency said. Over the coming years, the Korean government plans to privatize the bank in stages. Fitch said it believes privatization will likely take some years given the need to first develop the bank's commerciality and franchise.

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