S&P rates Korea Railroad bonds A

Standard & Poor's said assigned its A long-term debt rating to Korea Railroad Corp.'s (A/stable/A-1) proposed CFH 315 million senior unsecured bonds due December 2019.

The company plans to use the proceeds for general corporate purposes, including refinancing.

S&P said the ratings reflect its opinion that the likelihood of the government of the Republic of Korea (foreign currency rating A+/stable/A-1; local currency rating AA-/stable/A-1+) providing timely and sufficient extraordinary support to Korea Railroad in the event of financial distress is "extremely high."

The agency assesses the stand-alone credit profile for Korea Railroad as b+ to reflect the company's "satisfactory" business risk profile and "highly leveraged" financial risk profile.

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