Fitch lowers Korea District

Fitch Ratings said it downgraded Korea District Heating Corp.'s long-term issuer default rating to A from A+.

The outlook is stable.

Fitch also said it downgraded the senior unsecured rating to A from A+ and removed the ratings from Rating Watch negative.

The downgrades follow the publication of Fitch's new government-related entities rating criteria based on the influence a government parent's likelihood to extend support to the entity, Fitch explained.

The ratings were placed on negative watch in November 2017 after the release of the exposure draft of the new criteria, the agency said.

The company's status, control and ownership by the state is considered strong while the state's track record of providing support to the Korea District and an expectation that it will continue to do so are assessed as moderate, Fitch said.

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