Fitch: No change for Korea Development Bank

Fitch Ratings said in a new report that it will maintain the existing A+ long-term foreign-currency senior debt rating on Korea Development Bank in light of the Korean government's plans for restructuring and ultimately privatizing the bank.

The ratings are in line with that of the Korean sovereign and such debt issues will remain effectively guaranteed by the sovereign until their maturity, Fitch said.

As the privatization plan proceeds, however, the bank may issue long-term foreign-currency debt that is not guaranteed by the government, the agency said. Such debt, when it is issued, would be rated by more in line with the bank's own standalone credit strengths, Fitch said.

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