Almost certain likelihood of extraordinary government support Sole oil policy arm of the government Strong on-going financial support from the government Large capital expenditures for overseas oil exploration and production (E&P) investment Potential credit risk in policy financing business Exposure to oil price/currency volatility The rating on Korea National Oil Corp. (KNOC) is based on an equalization with the long-term ratings on the Republic of Korea (local currency rating A+/Stable/A-1, foreign currency rating A/Stable/A-1). This reflects Standard&Poor's Ratings Services' opinion that there is "almost certain" likelihood that the Korean government would provide timely and sufficient extraordinary support to KNOC in the event of financial distress. We assess the stand-alone credit profile of KNOC to be in the 'BBB'
