Fitch gives AA- to Korea East-West bonds

Fitch Ratings said it assigned Korea East-West Power Co., Ltd.'s (EWP, AA-/stable) proposed dollar-denominated senior unsecured bond an expected rating of AA-(EXP).

The company will use the net proceeds to refinance existing debt and for general corporate purposes.

The notes are rated at the same level as Korea East-West’s senior unsecured rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company.

Fitch said the ratings are equalized with those of parent Korea Electric Power Corp. (Kepco, AA-/stable) due to their strong strategic and operational ties, in line with Fitch Ratings' Parent and Subsidiary Rating Linkage criteria.

The rating also reflects Korea East-West’s position as one of Kepco's six wholly owned generation companies (gencos). Each genco accounts for 9%-10% of the country's generation capacity, except Korea Hydro & Nuclear Power Co., Ltd. (AA-/stable), which accounts for 28%.

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