S&P rates KDB bond 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-2) proposed No. 22 Samurai bond due June 15, 2009.

S&P said its issuer credit ratings on KDB are based on the bank's public policy role as the primary governmental financial institution that extends medium- to long-term financial facilities in support of the Korean government's (foreign currency A-/stable/A-2; local currency A+/stable/A-1) industrial policy objectives. The bank is 100% government owned.

"The ratings also incorporate the strong direct support from the Korean government, including capital injections and provision of loans," said S&P credit analyst Takahira Ogawa.

The ratings also reflect the government's legal obligation to maintain the bank's solvency. "This statutory obligation, however, is only a sign of the government's commitment to support KDB, rather than a direct guarantee of timely payment for all of the bank's obligations," Ogawa added.

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