Moody's rates Korea Expressway MTNs A2

Moody's Investors Services said it assigned an A2 rating to Korea Expressway Corp.'s proposed drawdown under its $3.5 billion global medium-term note program.

The outlook is stable.

The proposed issuance will be used for general corporate purposes.

The rating primarily reflects the company's distinct policy role and high operational integration with the Korean government, as well as the strong support from the government as evidenced by the regular financial assistance, Moody's said.

While its debt service coverage is moderate due to its heavy capital expenditure needs, the agency said this is mitigated by its low financial leverage and stable operating cash flow.

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