Fitch rates Kogas bond AA-

Fitch Ratings said it assigned a final senior unsecured rating of AA- to Korea Gas Corp.'s (Kogas) proposed $500 million bond.

The bond was issued under the company's $8 billion global medium-term note program, which also is rated AA-.

Kogas will use the net proceeds from the bond to refinance existing debt and for general corporate purposes, Fitch said.

The notes are rated at the same level as the company's senior unsecured rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company, the agency said.

The ratings are equalized with Korea's sovereign ratings due to strong strategic and operational ties, Fitch said.

The ratings also reflect Kogas' status as an important state-owned enterprise in the country with a dominant position in the natural gas business through its monopoly in the wholesale gas segment and its ownership of the country's entire gas transmission infrastructure, the agency said.

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