Fitch rates Kexim notes A+

Fitch Ratings said it assigned an expected rating of A+ to The Export-Import Bank of Korea's (Kexim) planned senior unsecured global notes. The issue size is not yet confirmed, but is expected to be around the equivalent of $1 billion and will be issued under the bank's existing $8 billion European medium-term note program. The outlook is stable.

The agency said Kexim's long-term rating is aligned with that of South Korea, reflecting the bank's quasi-sovereign status. Kexim is unique among the three policy banks in South Korea in having a purely policy role: its activities support government economic objectives and do not compete with commercial banks. Kexim is wholly state owned and the government is legally required to provide funds to cover any loss the bank incurs that cannot be covered by its own reserves. Kexim therefore enjoys a de facto solvency guarantee from the Korean government, which Fitch believes will also ensure that it is able to meet its obligations in a timely manner.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.