Moody’s gives Aa2 to Korea Water notes

Moody's Investors Service said it assigned an Aa2 rating to the proposed senior unsecured dollar-denominated notes to be issued by Korea Water Resources Corp. (K-water, Aa2 stable).

The agency also assigned a provisional Aa2 rating to Korea Water’s newly established $2 billion euro medium-term note program.

The outlooks are stable.

The notes will be issued under the $2 billion euro medium-term note program.

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

"The Aa2 rating combines its baseline credit assessment of ba1 and Moody's assessment of a very high likelihood of government support for K-water," Moody's vice president and senior analyst Mic Kang said in a news release.

"Our assessment of a very high likelihood of support, if and when needed, reflects K-water's important policy roles in Korea's water utility sector, and the high reputational and contagion risks that may arise if it were to default."

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