Moody’s rates Korea Resources notes Aa2

Moody’s Investors Service said it assigned an Aa2 rating to the proposed senior unsecured dollar-denominated notes to be issued by Korea Resources Corp.

Moody’s also said it placed the rating under review for downgrade in line with the review for downgrade on the company’s issuer rating.

The notes will be issued under the company’s existing $3 billion global medium-term note program, which has a provisional Aa2 rating.

The proceeds will be used for general corporate purposes.

The rating reflects the high likelihood of timely extraordinary support from the Korean government given the company’s important policy roles, the agency said, as well as the high reputational and contagion risks that may arise if it were to default.

The company’s credit profile benefits from expected support from the government of Korea as a government-related issuer, Moody’s said.

Support is highly likely because the company has important mandated policy roles in association with securing stability in mineral resources procurement for the country, the agency said.

Such weakness is partly offset by its strong and continued access to the debt markets.

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