Fitch affirms Korea Gas

Fitch Ratings said it affirmed Korea Gas Corp.'s long-term foreign-currency issuer default rating and foreign-currency senior unsecured rating at A+.

The outlook is stable.

The company's inability to pass through higher fuel costs onto tariffs between 2008 and the third quarter of 2010 affected the company's cash generation and credit metrics significantly, Fitch said.

But the agency said it expects the company's links with the government to remain very strong for the foreseeable future, which is considered to be the key driver for its ratings.

Its revenue remains regulated and the company benefits from a tariff structure that allows the pass-through of changes in raw material costs to the wholesale price, Fitch added.

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