Moody’s: Korea Expressway notes Aa2

Moody's Investors Service said it assigned an Aa2 rating to the proposed senior unsecured dollar-denominated notes to be issued by Korea Expressway Corp. (KEC, Aa2 stable).

The outlook is stable.

The notes will be issued under KEC's existing $3.5 billion global medium-term note program, which is rated provisional Aa2.

The company plans to use the proceeds for general corporate purposes, including refinancing and capital expenditure.

"The Aa2 rating combines its baseline credit assessment of baa2 and Moody's assessment of a very high likelihood of government support for KEC," Moody's vice president and senior analyst Mic Kang said in a news release.

"Our assessment of a very high likelihood of support, if and when needed, reflects KEC's important policy roles for Korea's toll road sector, and the high reputational and contagion risks that may arise if it were to default."

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