Moody's rates Korea Electric notes A2

Moody's Investors Service said it assigned its A2 senior unsecured rating to Korea Electric Power Corp.'s (Kepco) proposed €250 million five-year notes.

At the same time, Moody's said it affirmed Kepco's A1 local currency issuer rating. The outlook is stable.

The ratings of Kepco reflect the application of Moody's new rating methodology for government-related issuers, including a baseline credit assessment of 3, A3 local currency rating of the Korean government, high dependence and high support, the agency said.

Moody's noted the baseline credit assessment of 3 is underpinned by Kepco's continued solid financial profiles, which are in turn supported by the sustainability of electricity demand growth in Korea and improvements in operating efficiency and also reflects Kepco's financial flexibility to absorb increases in fuel costs in the near to medium term.

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