Fitch affirms Korea Finance

Fitch Ratings said it affirmed Korea Finance Corp.'s long-term foreign-currency issuer default rating at A+, short-term foreign-currency issuer default rating at F1 and senior unsecured debt rating at A+.

The outlook is stable.

The ratings reflect expectations of an extremely high probability of government support and are equalized with South Korea's sovereign ratings, Fitch said.

The Korean government is legally obliged to replenish the corporation's losses should its capital reserve funds fail to cover them, the agency said.

The bank's loan book is very sound with almost no non-performing loans due to high-quality borrowers and the corporation's short history, Fitch added.

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