Fitch rates Korea Development Bank notes AA-

Fitch Ratings said it assigned an expected AA- rating to Korea Development Bank's proposed long-term senior unsecured euro-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, Fitch said.

The proceeds will be used for the bank's general corporate purposes, including repayment of maturing bonds, the agency said.

The notes are rated at the same level as the bank's long-term foreign-currency issuer default rating as they will constitute direct, unconditional, unsecured and unsubordinated obligations. The bank's issuer default rating is equalized with South Korea's sovereign rating, reflecting de facto solvency guarantee by the government.

Any change in South Korea's sovereign ratings would affect the bank's ratings, Fitch said.

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