Moody's rates Korea Gas notes A1

Moody's Investors Service said it assigned an A1 rating to Korea Gas Corp.'s proposed senior unsecured Swiss franc notes.

The outlook is stable.

The proceeds will be used for general corporate purposes.

The rating reflects a baseline credit assessment of 8, which is equivalent to Baa1 rating, Moody's said, and the support that the Korean government is likely to provide in a distressed situation.

The rating is underpinned by its dominant market position in Korea's liquid natural gas industry, its critical policy role and tight government supervision, Moody's said.

Such strengths are partly offset by its weak financial metrics, execution risk associated with its expansion into natural gas exploration and production projects and exposure to fluctuating fuel costs, the agency said.

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