Bangkok--27 Jul--Moody's Asia Pacific Moody's announced today that it has confirmed the ratings of the following asset-backed securities as issued by twoissuers: 1. Issuer: KAL Japan ABS 3 Cayman Limited Yen 40,000 million of Secured Floating Rate Notes due February 2010 Rating of Aa3 is confirmed 2. Issuer: Asian Bond Fund II (Cayman) Limited Yen 5,929 million of Senior Floating Rate Notes due 2009 Rating of Aa3 is confirmed The action follows Moody's confirmation of the Korea Development Bank's ("KDB") Aa3 long-term foreign currency senior debt rating on July 25, 2007. The ratings on the asset-backed securities are closely linked to KDB's long-term foreign currency senior debt rating. Any change to KDB's rating will most likely result in a corresponding adjustment to the rating assigned to the asset-backed securities. For KAL Japan ABS 3 Cayman Limited, KDB provides an unconditional and irrevocable credit facility to, as well as an interest rate swap with, the notes issuer on timely payments of scheduled principal and interest on the secured floating rate notes. Both credit facility and interest rate swap are governed by English law. For Asian Bond Fund II (Cayman) Limited, KDB provides an unconditional and irrevocable credit facility for the notes issuer's timely interest payments to the swap provider and timely principal payments on the senior floating rate notes. The credit facility is governed by English law. Moody's Investors Service is a publisher of rating opinions and research. It is not involved in the offering or sale of any securities, nor is it acting on behalf of the offering party. This release is not a solicitation or a recommendation to buy, hold or sell securities. Hong Kong Jerome Cheng VP - Senior Credit Officer Structured Finance Group Moody's Asia Pacific Ltd. JOURNALISTS: (852) 2916-1150 SUBSCRIBERS: (852) 2916-1121 Hong Kong Marie Lam Vice President - Senior Analyst Structured Finance Group Moody's Asia Pacific Ltd. JOURNALISTS: (852) 2916-1150 SUBSCRIBERS: (852) 2916-1121