Fitch ups KT Corp.

Fitch Ratings said it upgraded KT Corp.'s long-term foreign-currency issuer default rating and senior unsecured rating to A from A-.

The outlook is stable.

Fitch said the upgrade is driven by the company's strengthened financial profile. At year-end 2006, KT's consolidated net debt-to-EBITDA ratio was 1 times, down from 1.2 times at year-end 2005 and 1.7 times at year-end 2004.

KT's ratings also reflect its position as South Korea's only fully diversified telecommunications operator and as the second-largest mobile service operator through its subsidiary KT Freetel, Fitch said.

The ratings also consider the competitive and regulatory environment in Korean telecommunications. The previous asymmetric regulatory regime and intense industry competition have contributed to variability in customer acquisition and retention costs and profitability, the agency said. High penetration also means more limited growth opportunities.

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