S&P rates Korea Gas bonds A

Standard & Poor's said it assigned an A rating to Korea Gas Corp.'s (A/stable) proposed $500 million senior unsecured bonds.

The rating reflects the company's strong position as the nation's sole dominant importer and monopoly wholesale distributor of liquefied natural gas, the agency said.

The rating is underpinned by stable and growing demand for liquefied natural gas and possible governmental support, the agency said, based on the company's strategic importance to the nation and reduced privatization risk under the current government.

These strengths are offset by the company's relatively heavy debt burden and continuous need for massive capital investments, S&P noted.

Combined ownership of Korea (foreign currency A/stable/A-1; local currency A+/stable/A-1), Korea Electric Power Corp. (A/stable/A-1) and local governments accounts for a 61.2% slice of total Kogas shares.

© 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.