Fitch rates Korea Gas bond AA-

Fitch Ratings said it assigned a final rating of AA- to Korea Gas Corp.’s $500 million senior unsecured bond.

The bond was issued under the company’s $8 billion global medium-term note program, which also is rated AA-.

Kogas will use the proceeds from the bond to refinance existing debt and for general corporate purposes, Fitch said.

The notes are rated at the same level as Kogas’s senior unsecured rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company.

The assignment of the final rating follows the completion of the bond issuance and receipt of documents conforming to the information previously received, the agency said.

The final rating is the same as the expected rating assigned in June, Fitch said.

The ratings are equalized with the ratings on Korea due to their strong strategic and operational ties, the agency said.

The ratings also reflect the company’s status as an important state-owned enterprise in the country with a dominant position in the natural gas business through its monopoly in the wholesale gas segment and its ownership of the country’s entire gas transmission infrastructure, Fitch said.

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