OREANDA-NEWS. Fitch Ratings has affirmed Doosan Power Systems S. A.'s (DPS) USD300m 2.5% guaranteed senior capital securities at 'AA-'.

The rating reflects the credit enhancement provided to investors by the unconditional and irrevocable guarantee from The Export-Import Bank of Korea (KEXIM; AA-/Stable).

KEY RATING DRIVERS

KEXIM as Guarantor: The notes are rated at the same level as KEXIM's Long-Term Issuer Default Rating as its irrevocable guarantee makes the notes the bank's direct, general, unsubordinated and unconditional obligations, which rank pari passu with all other present and future unsecured and unsubordinated obligations of KEXIM.

Effective Maturity Date: Fitch sees the notes' first call date as the effective maturity date. According to the terms of the notes, unless they have been fully redeemed before the first call date in 2018, KEXIM will be obliged to purchase the notes in full on the first call date. KEXIM will also be obliged to purchase the notes in full if DPS goes into bankruptcy before the first call date.

DPS's Credit Not Considered: DPS's standalone credit strength is not considered for the notes' rating, as KEXIM as the guarantor will purchase the bond in full if DPS is declared bankrupt.

RATING SENSITIVITIES

A change in KEXIM's ratings will result in an equivalent change in the notes' ratings, since the rating on the credit-enhanced notes is based solely on KEXIM's guarantee.