...IDRs Equalised with Sovereign: The Export-Import Bank of Korea's (KEXIM) IDRs are equalised with South Korea's ratings (AA-/Stable), reflecting Fitch Ratings' belief the state will provide timely support to the bank, if needed. KEXIM provides long-term large-ticket policy credit to exporters and importers, and is effectively 100%-owned by the state (66% directly and the rest through Korea Development Bank (AA-/Stable) and Bank of Korea). The government is legally obliged to absorb any losses that are not covered by the bank's reserves. Strong Support Track Record: The government has been keen on keeping KEXIM's capital ratios above the regulatory buffer zone. KEXIM received a total capital injection of KRW5.6 trillion in 2012-2017 as it incurred significant credit losses from exposure to troubled manufacturing corporates, mainly shipbuilders. The government uses its stakes in state-owned enterprises (eg Korea Expressway Corporation) as a ready means of support because an equity injection...
