Fitch affirms Korea Land

Fitch Ratings said it affirmed Korea Land Housing Corp.'s long-term foreign-currency issuer default rating and long-term foreign-currency senior unsecured rating at A+.

The outlook is stable.

The ratings reflect its status as a 100%-owned government enterprise, engaging in the acquisition, sales and development of land related to residential and industrial projects, Fitch said.

Almost all aspects of the company's activities are governed by the Korea Land Housing Corporation Act, the agency said.

While revenue has grown substantially in recent years on the back of major projects, debt levels and credit metrics have been deteriorating due to increased working capital from land purchases related to New Town projects, the downturn in the domestic real estate market and increased rental housing construction, Fitch said.

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