Korea National Oil Corp.'s Proposed Yen Senior Unsecured Notes Assigned 'AA' Rating

HONG KONG (S&P Global Ratings) Jan. 10, 2019--S&P Global Ratings today assigned its 'AA' long-term issue rating on the Japanese yen-denominated senior unsecured notes issued by Korea National Oil Corp. (KNOC: AA/Stable/--). The company plans to use the proceeds for refinancing of outstanding borrowings. The rating on the notes is subject to our review of the final issuance documentation. Our rating on KNOC is equalized with the sovereign credit ratings on South Korea (AA/Stable/A-1+) because we expect an almost certain likelihood of extraordinary government support if the company suffers financial distress. Wholly owned by the government, KNOC plays a critical role as the sole policy arm for managing the country's strategic petroleum reserves and improving its oil self-sufficiency. As of

...HONG KONG (S&P Global Ratings) Jan. 10, 2019--S&P Global Ratings today assigned its '##' long-term issue rating on the Japanese yen-denominated senior unsecured notes issued by Korea National Oil Corp. (KNOC: ##/Stable/--). The company plans to use the proceeds for refinancing of outstanding borrowings. The rating on the notes is subject to our review of the final issuance documentation. Our rating on KNOC is equalized with the sovereign credit ratings on South Korea (##/Stable/A-1+) because we expect an almost certain likelihood of extraordinary government support if the company suffers financial distress. Wholly owned by the government, KNOC plays a critical role as the sole policy arm for managing the country's strategic petroleum reserves and improving its oil self-sufficiency. As of end-June 2018, KNOC's capital structure consisted of about Korean won (KRW) 10 trillion of unsecured debt at the parent level, about KRW0.7 trillion of secured debt, and about KRW2.7 trillion of unsecured...

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