S&P rates Korea Gas notes A

Standard & Poor's said it assigned an A rating to Korea Gas Co.'s Swiss franc-denominated CHF 300 million senior unsecured bonds with a coupon rate of 2¼% due Oct. 6, 2015.

The rating reflects the extremely high likelihood that the Korean government would provide timely and sufficient extraordinary support to Korea Gas in the event of financial distress.

The company plays a critical role as the sole Korean liquid natural gas transmission/wholesale distribution company, S&P said.

The rating also reflects its strong market position in the domestic liquid natural gas market and the company's limited privatization risk, the agency said.

Constraining factors include the deterioration in its financial profile, aggressive capital expenditure plans and uncertainty related to liquid natural gas import market deregulation, S&P added.

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