S&P rates Korea Land notes AA

S&P said it gave its AA long-term issue rating to a $300 million drawdown by Korea Land and Housing Corp. under its $5 billion global medium-term note program. The senior unsecured notes will be due in 2023 or 2025.

“The issue rating on the proposed notes is the same as our issuer credit rating on LH because we do not foresee significant elements of subordination risk in the company’s capital structure. We equalize our rating on LH with the sovereign credit rating on Korea (AA/stable/A-1+). This mainly reflects our expectation of an almost certain likelihood that the government would provide extraordinary support if the company were to experience financial distress,” S&P said in a press release.

The company plans to use the proceeds for general corporate purposes, including refinancing and public housing projects.

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