Fitch rates Industrial Bank of Korea notes AA-

Fitch Ratings said it assigned Industrial Bank of Korea's (AA-/stable) proposed dollar-denominated senior unsecured notes an expected rating of AA-(EXP).

Fitch expects the issue size to be $500 million and the tenor of the notes to be five years. These are subject to change depending on market conditions. The notes will be issued under the bank's existing $8 billion global medium-term note program, which was last updated on April 15 at the Singapore Exchange Securities Trading Ltd.

Proceeds will be used for the bank's general operations, including extending foreign-currency loans and repaying maturing debt and other obligations.

The notes are rated at the same level as the bank’s long-term foreign currency issuer default rating as they will constitute direct, unconditional, unsecured and unsubordinated obligations of the bank. The issuer default rating is equalized with South Korea's rating (AA-/stable) to reflect the de facto solvency guarantee.

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