S&P rates Korea National Housing notes A

Standard & Poor's said it assigned its A long-term foreign currency debt rating to Korea National Housing Corp.'s (A/stable/--) proposed five-year global notes due 2010.

The outlook is stable, reflecting the expectation that the company will continue to play a strategically important policy role in providing rental housing for low-income households in Korea, S&P said.

The ratings are based on strong government support and its important public role as a wholly owned government entity implementing the Korean government's nationwide public housing policy, S&P said. The ratings also reflect continuous financial support from the government for the construction of rental housing for low-income households.

The company has a strong market position in the demand-driven residential real estate sector. The company also enjoys various tax benefits in its role as a national autonomous entity, S&P said. However, offsetting those factors is the company's aggressive capital structure with a ratio of total debt to total capital of 63% as of December 2004.

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