S&P lifts Korea Expressway

Standard & Poor’s said it upgraded the long-term corporate credit and debt ratings on Korea Expressway Corp. to AA- from A+.

The outlook is stable.

The stand-alone credit profile for Korea Expressway remains at BBB-.

The upgrade reflects the higher likelihood of the government of Korea providing extraordinary support to the company if it faces financial distress, S&P said.

The company now has a stronger and more critical role in the government’s national transportation infrastructure policy as the sole government-owned national expressway builder and operator, S&P said.

It also has become increasingly difficult for the private sector to expand its share in Korea’s toll road business due to the government abolishing the minimum revenue guarantee and strong public opposition to higher tariffs, the agency added.

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