Moody’s gives Aa2 to KNOC notes

Moody's Investors Service said it assigned an Aa2 rating to the proposed CHF 500 million senior unsecured notes to be issued by Korea National Oil Corp. (KNOC).

The outlook is stable.

The notes will be issued under KNOC's existing $9 billion global medium-term note program, which is rated provisional Aa2.

KNOC plans to use the proceeds for general corporate purposes, including working capital, capital spending and repayment of outstanding borrowings.

"The Aa2 rating reflects the very high likelihood that KNOC will receive timely and extraordinary support from the Korean government, given the company's important policy roles and the high reputational and contagion risks that could arise if it were to default," Moody's vice president and senior credit officer Wan Hee Yoo said in a news release.

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