S&P upgrades Kogas

S&P said it raised the long-term corporate credit and debt ratings on Korea Gas Corp. (Kogas) to AA- from A+.

The agency also said it raised the short-term rating on the company to A-1+ from A-1.

The outlook is stable.

The upgrades follow the upgrade of the Republic of Korea, S&P explained.

The ratings on Kogas reflect the extremely high likelihood that the government will provide the company with timely and sufficient extraordinary support if needed, the agency said.

Kogas is the sole government-owned entity responsible for wholesale sales of natural gas in the domestic market in Korea, S&P said.

The stable outlook reflects the stable outlook on the sovereign ratings on Korea and an expectation of a continuing extremely high likelihood of extraordinary support from the government in the event of financial distress at the company, the agency added.

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