Fitch applies AA- to Korail bonds

Fitch Ratings said it assigned Korea Railroad Corp.'s (Korail, AA-/stable) bonds a rating of AA-.

The notes are rated at the same level as Korail's long-term issuer default rating, which is equalized with its sovereign, Korea (AA-/stable), in light of its strong links to the sovereign and its high strategic importance. There is, therefore, a great likelihood that it would receive extraordinary government support, if needed. The entity's policy is dictated and closely monitored by the government of Korea.

The notes issued by Korail constitute the direct, unconditional, unsecured and unsubordinated obligations of Korail, ranking pari passu with all other outstanding unsecured and unsubordinated obligations.

Net proceeds will be used to refinance its existing obligations and for general corporate purposes.

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