Summary: Korea National Oil Corp.

Smaller oil and gas E&P business than that of other regional national oil companies. Exposed to the cyclical and volatile oil and gas E&P business. The government's sole oil policy arm. Modestly improving profitability due to oil price recovery and ongoing restructuring efforts. High debt. Modestly improving operating cash flows on a recovery in profitability. A rebound in capex. Stable access to low-cost funding as a key GRE in Korea. The stable outlook on Korea National Oil Corp. (KNOC) reflects the outlook on the sovereign credit ratings on the Republic of Korea (AA/Stable/A-1+) because we equalize the ratings on both. The equalization of ratings reflects our expectation of an almost certain likelihood of the government providing KNOC with extraordinary support

...Stable access to low-cost funding as a key GRE in Korea. Outlook: Stable The stable outlook on Korea National Oil Corp. (KNOC) reflects the outlook on the sovereign credit ratings on the Republic of Korea (##/Stable/A-1+) because we equalize the ratings on both. The equalization of ratings reflects our expectation of an almost certain likelihood of the government providing KNOC with extraordinary support if the company were to suffer financial distress....

Summary