Moody’s upgrades Korean GRIs, debt to Aa2

Moody's Investors Service said it upgraded the ratings of the following eight core Korean government related issuers to Aa2 from Aa3 and changed their outlooks to stable from positive: Korea Expressway Corp.; Korea Gas Corp.; Korea Land and Housing Corp.; Korea National Oil Corp. (KNOC); Korea Rail Network Authority; Korea Railroad Corp.; Korea Resources Corp. (Kores); and Korea Water Resources Corp.

The agency also upgraded the senior unsecured rating for the bonds issued by Minera y Metalurgica del Boleo, SAPI de CV and guaranteed by Kores to Aa2 from Aa3, and changed the outlook to stable from positive.

These actions follow Moody's Dec. 18 decision to upgrade the Korean government's issuer and senior unsecured ratings to Aa2 from Aa3. It also changed the ratings outlook to stable from positive.

The agency affirmed Korea District Heating Corp.’s (KDHC) A1 issuer and senior unsecured ratings and provisional A1 medium-term note rating with a stable outlook.

KNOC's baseline credit assessment was lowered to ba3 from ba2.

"The rating upgrade for the eight core GRIs, which exclude KDHC, reflects Moody's recognition that the Korean government's own improving credit profile will benefit their credit quality, given the very high likelihood of the government's timely support to the GRIs, if and when needed," Moody's vice president and senior analyst Mic Kang said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.