Moody's: Korea Land unchanged

Moody's Investors Service said that Korea Land and Housing Corp.'s deteriorating financial conditions and weaker access to the domestic debt market have no immediate impact on its A1 rating and stable outlook.

The rating continues to reflect an expectation that the Korean government will provide extraordinary support to the company in a timely manner in a distressed scenario, Moody's said.

There are increasing concerns over its ability to service its hefty debt given its materially deteriorating financial health and weakening access to the domestic debt market, the agency said.

Such deterioration has been driven by government policy, and Moody's said it believes that the government has both the incentive and capacity to render financial assistance to the company in view of its critical policy role as the dominant provider of residential land and low-price rental housing.

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