Moody's gives Korail bonds A1

Moody's Investors Service said it assigned an A1 rating to the CHF 315 million senior unsecured bonds to be issued by Korea Railroad Corp. (A1 stable).

The outlook is stable.

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

"The rating reflects the high likelihood of timely, extraordinary support from the Korean government to Korail, in case of need, because of the company's important policy roles and the high reputational and contagion risks that may arise if it defaults," Moody's vice president and senior analyst Mic Kang said in a news release.

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