Moody's rates National Agriculture co-op debt Prime-1

Moody's Investors Service said it assigned a Prime-1 foreign-currency short-term debt rating to National Agricultural Cooperative Federation's $2 billion euro-commercial paper program. The rating is subject to receipt of final documents.

The outlook is stable.

The rating reflects the entity's important policy role and significance to South Korea's banking system, Moody's said.

The agency said the likelihood of systemic support is high based on its role in the development of the agricultural sector and as South Korea's second-largest bank in asset terms.

A major credit risk is the bank's responsibility - although not legally binding - for the financial condition of member co-ops, many of which are intrinsically weak, Moody's said.

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