We expect KNOC's financial risk profile to deteriorate and its exposure to oil and gas E&P business to rise over the next two years because it will increase E&P investments to serve its government mandate. Thus we lowered the SACP for KNOC to 'bb' from 'bb+' while affirming our 'A+' foreign currency and 'AA-' local currency long-term corporate credit and debt ratings on the company. The stable outlook on the ratings on KNOC reflects the outlook on the Republic of Korea because we have equalized the ratings on the two owing to our expectation that the likelihood of extraordinary government support in the event of financial distress at KNOC is almost certain. On Nov. 27, 2012, Standard&Poor's Ratings
