Moody's rates Korea Water notes Aa2

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.

The outlook is stable.

The notes will be issued under its existing $2 billion euro medium-term note program, which has an Aa2 rating.

The proceeds will be used for general corporate purposes, including refinancing and capital expenditure, the agency said.

The rating is primarily driven by an assessment of a very high likelihood of support from the Korean government given its important policy roles in the country's water utility sector and the high reputational and contagion risks that may arise if it were to default, the agency said.

Moody's said it believes that Korea Water will remain strategically important to the Korean government for at least several years as it carries out the policy roles of constructing, managing and operating most of the country's water utility assets.

© 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.