Fitch affirms KNOC

Fitch Ratings said it affirmed Korea National Oil Corp.'s (KNOC) long-term foreign currency issuer default rating and foreign currency senior unsecured rating at AA-.

The short-term foreign currency issuer default rating was affirmed at F1+.

The outlook is stable.

“KNOC's ratings are equalised with those of Korea due to its status as a strategically important state-owned enterprise,” the agency said in a news release.

Fitch said the company has a larger production scale, longer reserve life and better geographical diversification than other B+ rated peers such as Unit Corp. (B+/stable), Kosmos Energy Ltd. (B+/stable) or PT Saka Energi Indonesia (BB+/stable).

However, KNOC's credit profile is constrained by its high leverage and the high cost of its main producing assets, the agency said.

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