Moody's rates Korea Resources notes A1

Moody's Investors Service said it assigned an A1 rating to the dollar-denominated bonds to be issued by Minera y Metalurgica del Boleo, SAPI de CV and guaranteed by parent company Korea Resources Corp. The outlook is stable.

The proceeds from the notes will be used for general corporate purposes.

The agency said the A1 rating primarily reflects Korea Resources' distinct policy role, high level of operational integration with the Korean government and receipt of regular financial support from the government. In view of the government's emphasis on securing mineral resources and Korea Resources' central role in fulfilling such goals, Moody's expects Korea Resources' strategic importance to the government will remain high at least over the next two to three years.

At the same time, the company has high financial leverage and weak interest coverage, Moody's said, although such weakness is partly offset by its strong and continued access to the debt markets.

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