Korea National Oil Corp.'s Proposed U.S. Dollar-Denominated Senior Unsecured Notes Rated 'AA'

HONG KONG (S&P Global Ratings) Sept. 21, 2020--S&P Global Ratings today assigned its 'AA' long-term issue rating to the U.S. dollar-denominated senior unsecured notes that Korea National Oil Corp. (KNOC; AA/Stable/--) proposes to issue. KNOC plans to use the proceeds for general corporate purposes, including the repayment of existing debt. The issue rating is subject to our review of the final issuance documentation. We equalize the issue rating on the proposed notes with the issuer credit rating on KNOC because we do not foresee any material structural or contractual subordination risks in the company's capital structure. As of June 30, 2020, KNOC's capital structure consisted of about Korean won (KRW) 11.9 trillion of unsecured debt at the parent level, as

...September 21, 2020 HONG KONG (S&P Global Ratings) Sept. 21, 2020--S&P Global Ratings today assigned its '##' long-term issue rating to the U.S. dollar-denominated senior unsecured notes that Korea National Oil Corp. (KNOC; ##/Stable/--) proposes to issue. KNOC plans to use the proceeds for general corporate purposes, including the repayment of existing debt. The issue rating is subject to our review of the final issuance documentation. We equalize the issue rating on the proposed notes with the issuer credit rating on KNOC because we do not foresee any material structural or contractual subordination risks in the company's capital structure. As of June 30, 2020, KNOC's capital structure consisted of about Korean won (KRW) 11.9 trillion of unsecured debt at the parent level, as well as about KRW3.1 trillion of debt issued by its subsidiaries. The company's priority debt ratio is about 20%, lower than our notching-down threshold of 50%. Our rating on KNOC is equalized with the sovereign credit...

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