Moody's rates Korea Exchange Bank bond A2

Moody's Investors Service said it assigned an A2 rating to Korea Exchange Bank's proposed senior unsecured fixed rate drawdown due 2016 under its $4 billion euro medium-term note program.

The outlook is stable.

The rating is underpinned by the bank's long history, modest size and strong franchise in foreign exchange and trade finance, according to the agency.

It also incorporates the stronger operating and financial performance posted by the bank under U.S. investment fund Lone Star, which has been its largest shareholder since October 2003, the agency noted.

Moody's said it is concerned that the overhang arising from the lack of clarity over future ownership may adversely impact the franchise.

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