Fitch affirms three Korean banks

Fitch Ratings said it affirmed the AA- long-term issuer default ratings on Korea Development Bank, Export-Import Bank of Korea (Kexim) and Industrial Bank of Korea.

The outlooks are stable.

At the same time, the agency affirmed Industrial Bank of Korea’s viability rating at a-.

Fitch said the issuer default ratings and support rating floors of the three key policy banks are equalized with the issuer default ratings of South Korea (AA-/stable).

The agency said the banks' ratings, along with their support ratings of 1, reflect an expectation that there is an extremely high likelihood that the state will provide support to the banks, if needed.

“The expectation is based on the important policy roles the three banks carry out for the country’s economy, the government’s controlling ownership of the banks and the government’s de facto solvency guarantee stated in the respective legislation to establish the banks,” Fitch said in a news release.

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