Fitch: Korea Gas notes AA-

Fitch Ratings said it assigned final ratings of AA- to Korea Gas Corp.'s (Kogas) dollar-denominated senior unsecured notes.

The notes were issued in two tranches: $500 million due 2021; and $400 million due 2026.

The notes were issued under the company's global medium-term note program, which is also rated at AA-.

The proceeds will be used to refinance existing debt and for general corporate purposes, Fitch said.

The notes are rated at the same level as Kogas’ senior unsecured rating as they represent direct, unconditional, unsecured and unsubordinated obligations.

The ratings are equalized with that of Korea due to their strong strategic and operational ties, Fitch said.

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

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