S&P rates Korea Resources notes A

S&P said it assigned an A long-term rating to the dollar-denominated senior unsecured notes issued by Korea Resources Corp.

The notes will be drawn from the company's $3 billion global medium-term note program, which has an A rating.

The proceeds will be used mainly to refinance its debt obligations.

Korea's Ministry of Strategy and Finance announced in March that it will merge Korea Resources with Mine Reclamation Corp. (Mireco), a government entity that focuses on restoring and maintaining mining facilities, S&P explained.

Although the merger could be somewhat credit positive for Korea Resources, it does not provide a fundamental solution to lowering its sizable debt, the agency said.

The new entity will assume all assets and liabilities of both companies, S&P added.

The stable outlook reflects an expectation that the company will continue to receive government support as it serves an essential policy role by managing mineral resources for economic development of Korea, the agency said.

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