S&P rates Korea Electric bonds A

Standard & Poor's said it assigned an A rating to Korea Electric Power Corp.'s proposed five-year senior unsecured bonds, which are to be drawn down from its $3 billion global medium-term note program.

The rating is subject to final documentation.

The ratings reflect its strong market position as a monopoly electric power transmission/distribution operator and dominant electric power generation company in Korea, S&P said.

The ratings also reflect the extremely high likelihood that the government of Korea would provide timely and sufficient extraordinary support in the event of financial distress, the agency said.

These strengths are offset by a lack of transparency in the tariff setting system, the recent deterioration in the company's financial profile and exposure to fuel price and currency volatility, S&P said.

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