We expect KNOC to face weakened operating cash flows due to lower oil prices and slower production growth over the next two years. As a result, we are revising the SACP for the Korea-based oil and gas E&P company to 'bb' from 'bb+' to reflect the weakened buffer in its financial risk profile. At the same time, we are affirming our 'AA-' long-term corporate credit ratings and our 'AA-' debt ratings on the company, which we equalize with the ratings on the Republic of Korea owing to our expectation of an "almost certain" likelihood of extraordinary government support in the event of financial distress at KNOC. The stable outlook on the rating on KNOC reflects the outlook on our ratings
