Fitch affirms Korea Development Bank

Fitch Ratings said it affirmed Korea Development Bank's long-term foreign-currency issuer default rating at A+, along with its short-term foreign-currency issuer default rating at F1, senior unsecured rating at A+ and commercial paper rating at F1.

The company also said it affirmed KDB New York Branch's commercial paper rating at F1.

The outlook is stable.

The affirmations reflect the South Korean government's effective guarantee of the bank's solvency under the KDB Act, whereby it is legally required to provide funds to cover any losses that the bank may incur and cannot be covered by its own reserves, Fitch said.

Also, when the government sells any stake in KDB Financial Group (as it plans to do in or before May 2014), it will provide an additional guarantee for the bank's then existing long-term foreign-currency debt until they mature, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.