Fitch gives Komir A+

Fitch Ratings said it gave first-time foreign- and local-currency issuer default ratings of A+ to Korea Mine Rehabilitation and Mineral Resources Corp. (Komir) with a stable outlook.

The agency noted it considers Komir a government-related entity and bases its ratings on the expectation of exceptional government support if needed. Komir is owned by the Korean government.

“Our assessment reflects the entity's persistently weak financial profile, despite consistent government support and potential government guarantees. We believe the government may provide a capital injection in the next five years to address Komir's negative equity and alleviate its financial burden. The government can guarantee the repayment of the entity's bond obligations under the Komir Act, which also stipulates that the government can assume the entity's losses if its reserves are insufficient to absorb the amounts,” Fitch said in a statement.

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