S&P assigns KT notes A

Standard & Poor's said it assigned its A rating to KT Corp.'s proposed senior unsecured notes.

The agency said it expects the proposed issuance to be about $300 million with proceeds to be used to repay maturing existing debt.

S&P said the rating on KT reflects the company's dominant position in Korea's fixed-line telecommunications market, its solid and stable operating cash flow, and its modest financial risk profile.

At the same time, the rating takes into account revenue declines in its fixed-line telephony services, a saturated and competitive domestic telecommunications market, and regulatory pressure to cut prices, the agency said.

The stable outlook reflects S&P's view that KT's strong market position will enable it to maintain a stable operating cash flow and a modest financial risk profile, the agency said.

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