S&P: Korea Expressway bonds A+

Standard & Poor's said it assigned an A+ debt rating to proposed senior unsecured bonds to be drawn from Korea Expressway Corp.'s $3.5 billion global medium-term note program.

The agency said it raised its long-term foreign currency ratings on Korea Expressway to A+ from A on Sept. 17 after raising its long-term foreign and local currency credit ratings on the Republic of Korea to A+ and AA-, respectively, from A and A+.

Strong ties between Korea Expressway and the government make the ratings on the sovereign a key driver for the ratings on the company.

S&P said it also lowered the stand-alone credit profile for Korea Expressway to bbb- from bbb. The agency said the stand-alone credit profile reflects deterioration in the financial risk profile for the company, due to the government's tight control of toll rates and the large capital expenditures that the company makes on its projects.

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