Fitch lifts Kepco

Fitch Ratings said it upgraded Korea Electric Power Corp.'s (Kepco) senior unsecured rating to A from A- and its short-term rating to F1 from F2 with a stable outlook.

"The upgrade in Kepco's ratings reflect the consistent improvement in its credit metrics over the past three years despite challenging operating conditions," said Chee-Leong Lee, associate director in Fitch's Asia-Pacific Energy and Utilities Team.

Lee added that the case for an upgrade was compounded by the continuation of its monopoly position given the suspension of privatization within the distribution sector, the sustainable growth in Korea's electricity demand and the strong implicit support and ongoing majority ownership of the government - at least 51% as mandated by law.

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