Fitch: NACF unchanged

Fitch Ratings said it sees no immediate rating impact on National Agricultural Cooperative Federation's A senior debt securities resulting from the issuer's reorganization. This is due to the cross guarantee of South Korea's Commercial Act and Fitch's unchanged credit view of NACF. The issuer has an A issuer default rating, and the outlook remains positive.

NACF's rating reflects Fitch's view that the Korean government's (A+/positive) propensity to support NACF would be higher than that for Korean commercial banks given its key policy role in the agricultural sector.

However, it also reflects the government's lower propensity to support NACF than that for major policy banks in Korea, the agency said. In particular, Fitch believes support will be less timely than other major policy banks given that, unlike the latter, NACF does not have a solvency guarantee in the NACF Act nor government majority ownership.

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