S&P rates Export-Import Bank of Korea notes A

Standard & Poor's said it assigned its A senior unsecured foreign currency debt rating to the Export-Import Bank of Korea's (foreign currency A/stable/A-1, local currency -/-/A-1) proposed five-year global notes of $500 million.

S&P said the ratings reflect the bank's public policy role as Korea's official export credit agency and its strong direct support from the Korean government, including capital injections and the provision of loans.

The ratings are constrained by its low profitability, the agency said; as a state-owned bank with a public policy mandate, the Export-Import Bank is not primarily concerned with profit maximization. Its margin declined to 0.89% in 2004 from 1.69% in 2003 and might not improve as interest rates rise globally.

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