Fitch: No change for Korea Electric, Korea Gas

Fitch Ratings said it said the government's announcement to raise the electricity and city gas tariff should ease financial pressures for Korea Electric Power Corp. (rated A+ with negative view) and Korea Gas Corp. (rated A+ with negative view).

The agency said it rates both companies based on their strong linkage to the Korean government, therefore the recent the announcement does not have any impact on the existing ratings of the two entities.

The tariff hike should help both companies further improve their cash flow and leverage metrics in 2009, Fitch said.

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