Moody's assigns Aa2 to Korea Expressway notes

Moody's Ratings said it assigned a rating of Aa2 to the proposed U.S. dollar-denominated senior notes to be issued by Korea Expressway Corp. (KEC, Aa2 stable).

The outlook is stable.

The notes will be issued under the company’s $3.5 billion global medium-term note program, which is rated (P)Aa2.

Moody's said Korea Expressway plans to use the net proceeds from the proposed issuance for general corporate purposes, including repayment of maturing debt.

“The Aa2 rating primarily reflects Moody's assessment of a very high likelihood of extraordinary support for KEC from the Government of Korea (Aa2 stable), given the company's critical policy roles for Korea's transportation sector and strategic importance, and the government's low tolerance for the reputational and contagion risks that would result from a default at the company,” Moody’s said in a news release.

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