S&P rates National Agricultural Cooperative Federation notes BBB+

Standard & Poor's said it assigned its BBB+ rating to the proposed 10-year lower Tier II subordinated notes of Korea's National Agricultural Cooperative Federation (NACF, A-/stable/A-2).

S&P said that the rating reflects its practice of rating subordinated debt one notch below the long-term senior credit rating for issuers rated BBB- or above.

"Due to the strong likelihood of support from the Korean government, fluctuation in NACF's fundamental financial profile is not as likely to affect the credit ratings on the federation as much as it would for most rated commercial banks in Korea," said S&P credit analyst Jae Min Kwon.

The federation generates most of its profits from its banking operations, the third largest in Korea, S&P said.

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