Fitch: Korea Finance notes A+

Fitch Ratings said it assigned an expected rating of A+ to Korea Finance Corp.'s proposed long-term senior unsecured dollar-denominated notes.

The notes will be issued under the bank's existing $5 billion shelf program last updated in June at the U.S. Securities and Exchange Commission.

While the issue size has yet to be determined, the proposed tenor is 10 years, Fitch said.

The proceeds will be used for the company's general operations, including extending foreign-currency loans.

The expected rating is the same as the company's long-term foreign-currency issuer default rating, which is equalized with the issuer default rating of South Korea's sovereign, reflecting a belief of an extremely high probability of support from the government, the agency said.

The Korean government is legally obliged to cover Korea Finance's losses should its capital reserve funds fail to do so, Fitch said.

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