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 dollar-denominated notes.

The notes will be issued under the bank's existing $5 billion shelf 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 maturing debt and other obligations, Fitch said.

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

Fitch said it expects that if and when the government sells down its stake in KDB Financial Group, the holding company of the bank, the issue will be protected by additional specific guarantee by the government.

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