Fitch rates Kexim bonds A+

Fitch Ratings said it assigned Export-Import Bank of Korea's (Kexim) planned senior unsecured, euro-denominated, fixed-rate bonds an expected rating of A+. The issue size and term have not been confirmed yet, but the benchmark issue size is €750 million due May 2013. It will be issued under the bank's existing U.S. shelf program. The final rating is contingent upon receipt of final documents.

The rating is the same as the bank's long-term foreign-currency issuer default rating of A+ with stable view. Kexim's long-term foreign-currency issuer default rating is aligned with that of the Republic of Korea, reflecting the bank's quasi-sovereign status.

The bank's margins are relatively low, Fitch said, because as a policy bank, it does not seek to maximize profits. Nevertheless, the bank has not reported a loss for many years, including during the 1997 -1998 economic crisis in Korea, the agency said.

© 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.