S&P rates KNOC notes AA

S&P said it assigned an AA long-term issue rating to the proposed senior unsecured notes to be issued by Harvest Operations Corp., which is a wholly owned subsidiary of Korea National Oil Corp. (KNOC).

The notes will be fully, unconditionally and irrevocably guaranteed by KNOC and will rank equal to the company's existing senior unsecured notes, S&P said.

The proceeds will be used to refinance its debt obligations, the agency said.

The rating on the guarantor KNOC is equalized with the sovereign credit ratings on the Republic of Korea because of a likelihood of extraordinary government support, if needed, S&P said.

KNOC plays a critical role as the sole policy arm for managing the country's strategic petroleum reserves and improving its oil self-sufficiency, the agency said.

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