Korea National Oil Corp.

Overview Key strengths Key risks Major government-related entity as the Korean government's sole oil policy arm. High debt levels. Monopoly in stockpiling and managing Korea's strategic oil reserves. Exposure to inherent earnings volatility and cyclicality of the oil and gas sector. Strong capital market standing as a key government-related entity. Smaller scale compared with other oil and gas companies in the region. We expect KNOC to continue benefiting from extraordinary government support in times of distress. We believe the company plays a critical role as the government's sole legally mandated oil policy arm. KNOC will likely maintain a monopoly in the stockpiling and management of Korea's strategic oil reserves. The government's full ownership of KNOC also enables ongoing financial support

...The ratings on Korea National Oil Corp. (KNOC) are equalized with those on South Korea. We expect KNOC to continue benefiting from extraordinary government support in times of distress. We believe the company plays a critical role as the government's sole legally mandated oil policy arm. KNOC will likely maintain a monopoly in the stockpiling and management of Korea's strategic oil reserves. The government's full ownership of KNOC also enables ongoing...

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