Moody's affirms Korea Electric

Moody's Investors Service said it affirmed Korea Electric Power Corp.'s A1 rating with a stable outlook.

The agency also said it lowered the company's baseline credit assessment to 8 (Baa1) from 6 (A2) and changed the support level to very high from high.

The affirmation reflects a belief that expected strong support from the Korean government should offset the company's weakened financial profile due to the insufficiency of current tariff levels to cover its high fuel costs and large capital expenditure program, Moody's said.

This is due to the company's strategic importance to Korea's economy and strong policy role in the power sector, Moody's said.

The downgrade reflects the firm's materially weakened financial metrics, the agency said.

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