S&P upgrades Korea Gas

S&P said it upgraded Korea Gas Corp. to AA from AA- on the increased likelihood of greater support from the Korea government in case of financial distress.

“This is based on Kogas' increasing importance to Korea's energy supply and its strengthening relationship with the government. As a result, we equalize the ratings on Kogas with the sovereign ratings,” said S&P in a news release.

Korea is trying to reduce its reliance on coal and nuclear power, and Kogas has almost a monopoly on liquified natural gas and hydrogen supply, the agency said.

S&P said it also expects Kogas to take a leading role in hydrogen-based energy supply, a green fuel.

The outlook is stable.

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