S&P rates Kepco bonds A

Standard & Poor's said it assigned an A rating to Korea East-West Power Co. Ltd.'s (A/stable) proposed senior bonds.

Proceeds will be used for refinancing and capital spending.

The agency said it equalized the long-term corporate credit rating on KEWP with the rating on Korea Electric Power Corp. (A/stable/A-1), which wholly owns KEWP.

The rating on KEWP also reflects its importance to the national electricity supply as well as a reduction in the risk that the government of the Republic of Korea (local currency A+/stable/A-1; foreign currency A/stable/A-1) will privatize it in the foreseeable future.

The standalone credit profile for KEWP is bbb, which reflects the company's strong business risk profile based on its solid market position and significant financial risk profile as well as its need to make significant capital expenditures to meet growing demand for electricity, S&P said.

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