Fitch affirms Korea District Heating; outlook stable

Fitch Ratings said it affirmed Korea District Heating Corp.'s long-term foreign-currency issuer default rating at A and senior unsecured ratings at A.

The outlook is stable.

The ratings reflect its status as a state-owned enterprise, Fitch said, and its dominant position in the South Korean district-heating industry with legal and logistical monopolies in the greater Seoul area.

The government has full control over the company's management and operations, and all significant aspects of its activities are governed by law, the agency said.

Fitch said Korea District's strategic importance to the government is high, though the one-notch differential from the sovereign rating reflects the relatively weaker strategic ties versus some of its peers.

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