S&P rates Kepco bonds A-

Standard & Poor's said it assigned its A- rating to Korea Electric Power Corp.'s (foreign currency rating A-/stable/A-2, local currency rating A-/positive/A-2) proposed $300 million global bonds due 2034.

"The rating on Kepco reflects its strong market position as the dominant player in the Korean electric power industry," said S&P credit analyst Eun Jin Kim. "The rating also reflects the consolidated strength of Kepco and its group companies, including the five thermal generating subsidiaries."

S&P said it expects the deregulation of power markets and the ultimate privatization of some of Kepco's generating units to proceed at a deliberate pace that prioritizes economic stability and stable power supply. According to the deregulation plan, Kepco will focus on the power transmission business, which encompasses the least risk, and control Korea Hydro & Nuclear Power Co. Ltd., the single nuclear-generating subsidiary.

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