Fitch rates Industrial Bank of Korea notes A+

Fitch Ratings said it assigned an expected rating of A+ to Industrial Bank of Korea's proposed senior unsecured global notes. The five-year maturity notes will be issued in dollars with a benchmark size.

The expected rating of the issue is the same as the bank's long-term foreign-currency issuer default rating, which is in turn aligned with that of the Republic of Korea (rated A+ with negative view), reflecting the Korean government's effective guarantee of the bank's solvency. The rating is contingent upon receipt of final documents.

The government's previous plan to reduce its stake in the bank to 50.1% is now seen as unlikely to occur for some years, Fitch said, as is the full privatization of the bank and removal of its effective government guarantee.

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