Moody's rates Industrial Bank of Korea notes A3

Moody's Investors Service said it assigned an A3 rating to the Industrial Bank of Korea's proposed $500 million unsecured senior notes due 2010, under the $2 billion global MTN program.

The outlook is stable.

Moody's said the rating is underpinned by Industrial Bank of Korea's role as one of Korea's three policy banks and provider of financing to small- and medium-sized enterprises (SMEs) in the country. The bank is the primary vehicle of specialized SME funding in Korea, particularly to small-scale SMEs, which are traditionally under-served by commercial banks.

The rating also takes into consideration the government of Korea's legal obligation to replenish any deficit that may arise if reserves are insufficient to cover annual net losses, as stipulated under the Industrial Bank of Korea Act.

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