Moody's rates Korean National Housing bonds A3

Moody's Investors Service said it assigned an A3 senior unsecured rating to the proposed bonds issued by Korea National Housing Corp.

The outlook is positive.

The rating reflects Moody's baseline credit assessment of the company, the South Korean government's A3 local-currency rating, the high dependence of the company on the government and the high support it receives from the government.

The baseline credit assessment is underpinned by the company's close relationship with the government, given it is the national body charged with implementing South Korea's public housing policy, Moody's added.

Upward rating pressure could evolve if an upgrade occurs in the sovereign rating. On the other hand, Moody's said, downward rating pressure could evolve if a downgrade occurs in the sovereign rating or an intention emerges to change the company's current status or role, such as allowing other entities to participate in or take over its activities or policy role, or permitting its privatization.

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