Fitch rates Korea Development Bank bonds A+

Fitch Ratings said it assigned an expected rating of A+ to Korea Development Bank's proposed senior unsecured Japanese yen-denominated bonds. While the issue size and tenor are yet to be determined, Fitch said it expects them to be for ¥30 billion and for two and three years, subject to market conditions. The rating is contingent upon receipt of final documents.

The expected rating is the same as the bank's long-term foreign-currency issuer default rating, which is in line with the sovereign rating of the Republic of Korea, Fitch said.

This reflects the Korean government's effective guarantee of the bank's solvency under the KDB Act, whereby the government is legally required to provide funds to cover any losses that the bank may incur but cannot be covered by its own reserves, the agency said.

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