Fitch rates KEB Hana bonds AAA

Fitch Ratings said it assigned an AAA rating to KEB Hana Bank's €600 million of series 2 mortgage covered bonds. Series 2 is a three-year fixed-rate bond that benefits from a 12-month extension period.

“The covered bonds are rated five notches above KEB Hana's issuer default rating (IDR). This is out of a maximum achievable uplift of seven notches, consisting of a resolution uplift of zero notches, a payment continuity uplift of six notches and a recovery uplift of one notch. Fitch's analysis relies on the highest asset percentage (AP) of the last 12 months of 22.3% as at end-March, or 51.8% taking into account the latest bond. This provides more protection than Fitch's 'AAA' breakeven AP of 87.5%,” the agency said in a statement.

The outlook is stable.

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