Fitch rates Industrial Bank of Korea notes A

Fitch Ratings said it assigned Industrial Bank of Korea's planned senior unsecured notes an expected A rating. The issue size is expected to be $500 million.

Fitch said its rating is not based on the bank's stand-alone financial strength but on its relationship with the Korean government. Industrial Bank of Korea is one of the three policy banks implicitly guaranteed by the Korean government. Its borrowings are not explicitly guaranteed, but under the IBK Act, the Korean government is obliged to maintain the bank's solvency.

Fitch believes that in addition to providing solvency support, the government will ensure that the bank is able to meet its obligations in a timely manner.

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