Moody's rates KNOC notes Aa2

Moody's Investors Service said it assigned an Aa2 rating to the proposed backed senior unsecured dollar-denominated notes to be issued by Harvest Operations Corp. and guaranteed by its parent, Korea National Oil Corp. (KNOC).

The outlook is stable.

Given the unconditional and irrevocable guarantee, the Aa2 rating on the notes mirrors KNOC's credit quality, Moody's said.

The proceeds will be used to refinance its $630 million notes due May 2018.

The rating reflects the high likelihood of timely extraordinary support from the Korean government, given KNOC's important policy roles and the high reputational and contagion risks that could arise if it were to default, the agency said.

KNOC's credit profile also benefits from expected support from the Government of Korea if needed as it is a government-related issuer, Moody's said.

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