Moody's rates Kowaco notes A2

Moody's Investors Service said it assigned its A2 rating to Korea Water Resources Corp.'s (Kowaco) proposed issuance of $150 million in senior unsecured notes.

Moody's also said it affirmed the company's A2 issuer rating.

The outlook is stable.

In accordance with Moody's Joint default Analysis rating methodology for government-related issuers, the A2 issuer rating continues to reflect Kowaco's baseline credit assessment of 6, the A3 local-currency rating of the Korean government, high dependence and high support.

The agency said Kowaco's stable operating profile and sound financials position the company well when compared with its global peers.

Credit strengths are partially offset by the company's large capex plan and its participation in the consolidation of the loss-making regional waterworks sector, an activity that may drag down its financial performance, Moody's added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.