Fitch rates NACF notes A+

Fitch Ratings said it assigned an expected rating of A+ to National Agricultural Cooperative Federation's proposed senior unsecured note issue. The notes will be issued under the bank's existing $8 billion global medium-term note program. The size of the issuance is expected to be $500 million, although both the size and the tenor will be determined, subject to market conditions.

Fitch said it believes the new proceeds from the issuance will be used for the bank's general purposes, including roll-over and repayment of maturing foreign- currency debts and other obligations. The rating is contingent upon receipt of final documents.

The expected rating of the issue is the same as the bank's long-term foreign-currency issuer default rating, which is in turn aligned with the Republic of Korea's sovereign rating of A+ with a stable view, Fitch said.

This reflects a belief that there is a high probability of support from the Korean government if required, given the company's crucial role in the distribution and security of the country's food supply, as well as its importance to Korea's financial system, the agency said.

The agency noted that such support may weaken in time, if and when the moves to split and reorganize the company become firmer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.