S&P rates KNOC notes AA

S&P said it rated Korea National Oil Corp.’s planned CHF 100 million of senior unsecured notes due 2024 AA.

“We equalize our ratings on KNOC (AA/stable/--) with the sovereign credit ratings on South Korea (AA/stable/A-1+). This is because we expect an almost certain likelihood of extraordinary government support if the national oil and gas company were to suffer financial distress. KNOC is wholly owned by the government and plays a critical role as the sole policy arm for managing the country's petroleum reserves and improving its oil self-sufficiency,” S&P said in a press release.

The company plans to use the proceeds for general corporate purposes, including refinancing debt.

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