Fitch rates Korea Development Bank bonds A+

Fitch Ratings said it assigned a final rating of A+ to the ¥12.1 billion Japanese Yen bonds - 29th series (2009) due Sept. 14, 2011, the ¥10.9 billion Japanese Yen bonds - 13th series (2009) due Sept. 14, 2012 and the ¥7 billion Japanese Yen bonds - 31st series (2009) due Sept. 12, 2014, issued by Korea Development Bank.

The ratings are in line with that of the Korean sovereign, which is rated A+ with stable outlook. The sovereign effectively guarantees such obligations.

Korea Development Bank - at the behest of the government - is restructuring itself such that its banking unit is fully separated from its policy roles and placed on commercially oriented sound footing, Fitch said.

But Fitch said it is likely to take some years to complete and the ratings should remain linked to that of the government.

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