Moody's rates Korea Railroad

Moody's Investors Service said it assigned an A2 senior unsecured rating to Korea Railroad Corp.'s proposed U.S. notes, and affirmed its A2 issuer rating.

The outlook is stable.

These notes will share the same terms and conditions as the $300 million notes issued in May. The proceeds from the notes will be used for general corporate purposes.

The rating reflects the company's distinct policy role and high operational integration with the Korean government, Moody's said, as well as the strong support from the government as evidenced by the regular financial assistance.

The company's credit metrics are weak for its rating, a result of inadequate railway tariff levels and large legacy debt it assumed from Korea High-Speed Rail Construction Authority, the agency said.

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