Moody's rates Korea Land

Moody's Investors Service said it has assigned an A3 issuer rating to Korea Land Corp. The outlook is negative, reflecting the negative outlook for the Korean government's A3 foreign currency rating.

Moody's said the A3 rating reflects Korea Land's important and unique role as the sole entity charged with implementing Korea's land and development policies and the expectation of sustained government support to ensure its financial viability and operational soundness. Such an expectation is underscored by Korea Land's strong links with the government, which owns 100% of the corporation.

Furthermore, the government intends to continue operating Korea Land as a wholly owned GIC as well as maintain strong involvement in and control of its operation and funding.

Moody's said the rating also reflects the fact that various regulatory provisions allow the government to render financial support to Korea Land in various ways, including the provision of guarantees for its debt obligations and capital injections, if required. Moody's expect that such support will more likely assume the form of cost sharing, land cost subsidies and special funding allocations on a project-by-project basis and, on a smaller scale, in the form of subsidized loans and equity injections, as was evident in the past.

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