Fitch rates Korea Development Bank notes A+

Fitch Ratings said it assigned an expected A+ rating to Korea Development Bank's proposed long-term senior unsecured renminbi-denominated notes.

The notes will be issued under the bank's existing $10 billion global medium-term note program. The issue size and tenor have yet to be determined.

The proceeds will be used for the bank's general operations, including repayment of foreign-currency obligations and extending foreign-currency loans, the agency said.

The expected rating is at the same level as the bank's long-term foreign-currency issuer default rating, which in turn is equalized with South Korea's sovereign rating, reflecting the de facto solvency guarantee by the government for the bank, Fitch said.

As part of its plan to strengthen its retail franchise, the bank intends to acquire the retail business of HSBC's Seoul branches, the agency said.

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