Moody's assigns Korea Water notes Aa2

Moody's Investors Service said it assigned an Aa2 rating to the planned senior unsecured dollar-denominated notes to be issued by Korea Water Resources Corp. The notes issued under the company’s $2 billion euro medium-term note program.

"The Aa2 rating is primarily driven by our assessment of a very high likelihood of support from the Korean government for K-water, if and when needed, given K-water's important policy roles in the country's water utility sector and the high reputational and contagion risks that may arise if it were to default," said Mic Kang, a Moody's vice president and senior credit officer, in a press release.

K-water plans to use all or part of the proceeds to refinance debt and fund new projects, such as flood protection, waterways protection and management, improvement of water supply infrastructure, renewable energy and water management.

The outlook is stable.

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