Fitch rates Kexim notes AA-

Fitch Ratings said it assigned an expected rating of AA- to the Export-Import Bank of Korea’s (Kexim) proposed long-term senior unsecured dollar-denominated notes.

The notes may be issued in dual tranches under the bank’s existing U.S. shelf program.

Fitch said it expects the size of the note issue to be about $1 billion and the tenors to be longer than five years.

The proceeds will be used for the bank’s general operations, including extending foreign-currency loans and repaying maturing debt and other obligations, the agency said.

The notes are rated at the same level as Kexim’s long-term foreign-currency issuer default rating as they will constitute direct, unconditional, unsecured and unsubordinated obligations of the bank, Fitch said.

The ratings are equalized with South Korea’s rating to reflect the bank’s policy role in the system and the government’s de-facto solvency guarantee and commitment to hold a controlling stake in Kexim, the agency said.

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