Moody’s rates Korea Water notes A1

Moody's Investors Service said it assigned an A1 rating to the proposed senior unsecured dollar-denominated notes to be issued by Korea Water Resources Corp. (Kowaco) (A1 stable).

The outlook is stable.

The company plans to use the proceeds for general corporate purposes, including capital expenditure and refinancing.

"The rating reflects the high likelihood of timely, extraordinary support from the Korean government to K-water because of its important policy roles, and the high reputational and contagion risks that may arise if it were to ever default," Moody's vice president and senior analyst Mic Kang said in a news release.

Korea Water’s credit profile benefits from the expected support from the Government of Korea (Aa3 stable), under Moody's joint default analysis approach for government-related issuers.

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