Fitch rates Korea Development Bank notes AA-

Fitch Ratings said it assigned an expected rating of AA- to Korea Development Bank’s proposed pound-denominated long-term senior unsecured notes.

While the specific size and tenor of the notes have yet to be determined, Fitch said it expects the tenor to be more than 18 months.

The bank plans to use the proceeds from the new issue for its general operations, including extending foreign-currency loans and repaying maturing debt and other obligations, 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 of the bank, Fitch said.

The bank’s issuer default rating is equalized with South Korea’s rating to reflect the government’s de-facto solvency guarantee and its commitment to its controlling or strategic stakes in the bank in light of the importance of the bank’s policy roles in the system, the agency said.

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