S&P lifts 10 Korea companies

S&P said it raised the long-term corporate credit and debt ratings on 10 Korean government-related entities to AA from AA-.

The upgraded government-related issuers included Korea Land and Housing Corp., Korea Rail Network Authority, Korea National Oil Corp., Korea Expressway Corp., Korea Electric Power Corp., Korea Hydro & Nuclear Power Co. Ltd., Korea Midland Power Co. Ltd., Korea South East Power Co. Ltd., Korea Southern Power Co. Ltd. and Korea East-West Power Co. Ltd.

The outlooks are stable.

The agency also said it affirmed the cnAAA Greater China regional scale debt ratings on Korea Land and Housing, Korea National Oil and Korea Expressway, along with the A-1+ short-term rating on Korea Electric Power (Kepco).

The upgrades follow the upgrade of the Republic of Korea, S&P said.

The ratings are now equalized with the sovereign ratings, reflecting these companies’ integral linkages and critical roles with the government of Korea, the agency said.

These companies benefit from an almost certain likelihood of extraordinary government support if needed, S&P said.

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