S&P rates Korea Land bonds AA-

S&P said it assigned an AA- rating to the upsized $2 billion medium-term note program of Korea Land and Housing Corp.

The original size of the program was $1 billion, S&P explained.

The agency also said it assigned an AA- rating to the $200 million senior unsecured bonds to be drawn from this program.

The proceeds will be used for general corporate purpose, including refinancing, S&P said.

Korea Land is expected to reduce its debts modestly over the next 12 months, mainly due to good operating cash flows from improving land and housing inventory sales in the Korean property market, the agency said.

But the company’s financial risk profile is still highly leveraged due to its still heavy debt and large interest expenses, S&P said.

The ratings also consider the almost certain likelihood that the government of the Korea would timely and sufficient extraordinary support if it were needed, the agency added.

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