Fitch rates Industrial Bank of Korea notes A+

Fitch Ratings said it assigned an expected rating of A+ to Industrial Bank of Korea's new dollar-denominated senior unsecured notes under the bank's $4 billion global medium-term note program. Fitch said it believes the notes will be fixed rate with a maturity of up to five and half years, and an expected size of $300 million to $500 million, subject to market conditions.

The expected rating is the same as the bank's long-term foreign-currency issuer default rating, which is aligned with the Republic of Korea's A+ rating and stable view.

The ratings reflect the Korean government's effective guarantee of the bank's solvency under the IBK Act, whereby the Korean government is legally obligated to cover the bank's net losses that are in excess of its capital reserve funds, Fitch said.

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