S&P rates Industrial Bank of Korea bonds A-

Standard & Poor's said it assigned its A- rating to Industrial Bank of Korea's (A-/stable/A-2) ¥50 billion five-year senior unsecured Samurai bonds due 2012.

The rating on the unsecured debt is subject to final documentation, the agency said, noting that the long-term counterparty credit rating on the bank reflects its public policy role as a government-owned, specialized policy bank for supporting the small and midsize enterprise sector.

The rating also reflects the bank's ability to maintain a sound financial profile, with improving asset quality despite the difficult economic environment, S&P noted, adding that the ratings also take into consideration the likelihood of a gradual reduction in government ownership and the bank's diminishing role in supporting SMEs, although majority ownership by the government is likely to be retained in order to maintain stability in the SME sector for the time being.

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