Fitch rates Korea Finance program A+

Fitch Ratings said it assigned an expected rating of A+ to Korea Finance Corp.'s proposed $10 billion euro medium-term note program, under which only senior unsecured notes will be issued and rank pari passu among themselves and all other outstanding unsecured and unsubordinated obligations. The rating is contingent upon receipt of final documents.

Fitch said this expected rating applies only to foreign-currency denominated notes to be issued under the program, although the company will be able to issue notes in either foreign-currencies or Korean Won.

The expected rating is the same as the company's long-term foreign-currency issuer default rating, which is aligned with the Republic of Korea's sovereign A+ rating as a reflection of its quasi-sovereign status, the agency said.

Korea Finance is wholly state-owned and the government is legally required to provide funds to cover any loss it may incur, Fitch said.

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