S&P lowers Korea National Oil

Standard & Poor's said it affirmed its A+ foreign currency and AA- local currency long-term corporate credit and debt ratings on Korea National Oil Corp. The outlook on the ratings remains stable.

The agency lowered the stand-alone credit profile for the company to BB from BB+.

The agency said it lowered the stand-alone credit profile because S&P expects the company's financial risk profile to deteriorate and its exposure to oil and gas exploration and production business to rise over the next two years owing to an increase in investments to serve its government mandate.

The rating are equalized with the sovereign ratings on the Republic of Korea, reflecting S&P's opinion that there is an almost certain likelihood that the Korean government would provide timely and sufficient extraordinary support in the event that the company suffered financial distress.

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