Fitch rates Korea Development notes AA-

Fitch Ratings said it assigned Korea Development Bank's proposed long-term senior unsecured dollar-denominated notes an expected AA-(EXP) rating.

The notes will be issued in two tranches - floating-rate with three-year maturity and fixed-rate with 10-year maturity - under the bank's existing U.S. shelf program, which was last updated on June 24, 2012 at the United States Securities and Exchange Commission.

The issue size has yet to be determined.

The notes are rated at the same level as Korea Development's long-term foreign-currency issuer default rating as they will constitute direct, unconditional, unsecured and unsubordinated obligations of the bank. The bank's issuer default rating is equalized with South Korea's rating, reflecting the de facto solvency guarantee provided by the government to the bank as per Article 44 of the Korea Development Bank's Act.

The bank is effectively 100% owned by the government (9.7% directly and 90.3% through Korea Finance Corp. (AA-/stable)).

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