Fitch rates Korea Gas bond AA-

Fitch Ratings said it assigned Korea Gas Corp.'s (AA-/stable) proposed dollar-denominated bond an expected senior unsecured rating of AA-(EXP).

The bond will be issued under the company's global medium-term note program, which is also rated AA-.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Fitch said the notes are rated at the same level as Korea Gas' senior unsecured rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company. The ratings of Korea Gas are equalized with Korea (AA-/stable) due to their strong strategic and operational ties.

The ratings also reflect Korea Gas' status as an important state-owned enterprise in the country, with a dominant position in the natural gas business through its monopoly in the wholesale gas segment and its ownership of the country's entire gas transmission infrastructure, the agency said.

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