Moody's rates Korea Development Bank bond A2

Moody's Investors Service said it assigned an A2 rating to Korea Development Bank's proposed dollar-denominated senior bond due 2015 under its shelf program.

The outlook is negative.

The rating is subject to receipt of final documents.

The rating is underpinned by government support for the bank, which requires the government to replenish the bank's deficits if its reserves are insufficient to cover losses, Moody's said.

The outlook reflects two factors: the ratings migration risk arising from the government's privatization plan, the agency said, and the uncertain terms and conditions of the government's guarantee.

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