Moody's rates Korea National Oil notes A2

Moody's Investors Service said it assigned an A2 senior unsecured rating to Korea National Oil Corp.'s proposed dollar-denominated notes issuance, and affirmed its A2 issuer rating.

The outlook is stable.

The proposed issuance will be used for general corporate purposes, including working capital, financing capital expenditures and repayment of outstanding borrowings, Moody's said.

The ratings reflect the company's dominant market position, distinct policy role and high operational integration with the government, as well as the presence of regular government financial assistance, the agency said.

These strengths enhance the company's credit profile and enable it to enjoy strong access to the debt markets, Moody's said.

The strengths are partly offset by its sizeable upcoming capital expenditure program, which will increase the company's leverage, the agency added.

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