Fitch rates Industrial Bank of Korea notes AA-

Fitch Ratings said it assigned an expected rating of AA- to Industrial Bank of Korea's proposed long-term senior unsecured euro-denominated notes.

The bank is expected to issue €500 million of five-year notes, though this is subject to change depending on the market situation, Fitch said.

The notes will be issued under the bank's existing $8 billion global medium-term note program.

The proceeds will be used for the bank's general purposes, including rolling over or repaying maturing foreign-currency debt and other obligations, Fitch said.

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

The bank's issuer default rating is equalized with South Korea's sovereign rating to reflect the de facto solvency guarantee, the agency said.

According to laws, the government is responsible for any losses incurred by the bank, but not covered by the bank's reserves, Fitch said.

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