S&P rates Kexim bond A

Standard & Poor's said it assigned its A senior unsecured foreign-currency debt rating to the Export-Import Bank of Korea's (Kexim: foreign-currency A/stable/A-1, local-currency A-1) ¥35 billion 1.84% series 5 Samurai bond due June 26, 2012.

The ratings are based on Kexim's public-policy role as the country's official export credit agency, S&P said. Kexim provides financial facilities in support of the Korean government's (foreign-currency A/stable/A-1, local-currency A+/stable/A-1) export-led growth strategy and foreign trade and investment policies. The ratings also incorporate strong direct support from the government, including capital injections and the provision of loans, the agency said.

The ratings are constrained by the bank's low profitability, although the bank has never recorded a loss, S&P added.

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