S&P rates Korea Railroad A

Standard & Poor's said it assigned A local- and foreign-currency long-term and A-1 short-term credit ratings to Korea Railroad Corp.

The outlook on the long-term rating is stable.

The agency said the ratings on Korea Railroad reflect its strategically important public role in operating South Korea's railways and the strong support it receives from the government.

These strengths are offset by S&P's opinion that the company would not be commercially viable in its current state as an independent entity. Korea Railroad has large operating losses and weak cash flow generation due to a relatively low fare structure relative to costs, which the agency said cannot be controlled by the company.

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