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

HONG KONG (S&P Global Ratings) March 24, 2021--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 Dec. 31, 2020, KNOC's capital structure consisted of about Korean won (KRW) 11.4 trillion of unsecured debt at the parent level, as

...March 23, 2021 HONG KONG (S&P Global Ratings) March 24, 2021--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 Dec. 31, 2020, KNOC's capital structure consisted of about Korean won (KRW) 11.4 trillion of unsecured debt at the parent level, as well as about KRW2.9 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 long-term sovereign...

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