Fitch affirms Korea Development Bank

Fitch Ratings said it affirmed Korea Development Bank's long-term foreign-currency issuer default rating at A+, short-term issuer default rating at F1, the long-term rating of its senior unsecured notes at A+ and the U.S. commercial paper issued by the bank's New York branch at F1.

The outlook is stable.

The affirmation reflects an expectation of ongoing strong support by the Korean government, which is rated A+ with stable view, Fitch said.

It remains unclear when the initial stake sale in the bank will take place, although Fitch said it expects it may take a considerable time. This is because the bank needs to improve its standalone franchise and profitability, which is largely underpinned by relatively low-cost wholesale, the agency said.

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