Almost certain likelihood of extraordinary government support Status as the government's sole oil policy arm Strong, ongoing government financial support Increasing exposure to cyclical and volatile oil and gas exploration and production (E&P) Weak, albeit improving, competitive position in E&P business Heavy capital expenditures for overseas E&P investment The ratings on Korea National Oil Corp. (KNOC; local currency rating A+/Stable/--; foreign currency rating A/Stable/--) are equalized with the sovereign 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 an almost certain likelihood of the government of Korea providing KNOC with timely and sufficient extraordinary support in the event it were to experience financial distress.
