Moody's rates Kepco notes Aa2

Moody's Investors Service said it assigned an Aa2 rating to the proposed senior unsecured dollar-denominated notes to be issued by Korea Electric Power Corp. (Kepco).

The outlook is stable.

The notes will be issued under Kepco's existing $3 billion global medium-term notes program, which has a provisional Aa2 rating, Moody's said.

Kepco plans to use the whole or part of the proceeds to develop renewable power sources and clean transportation, the agency said.

The ratings primarily reflect an assessment of a very high likelihood of extraordinary support for Kepco from the Korean government because of Kepco's essential public policy role and strategic importance, Moody's said.

The ratings also consider the government's low tolerance for reputational and contagion risks, the agency said.

The very high likelihood of support from Korea provides a six-notch uplift from Kepco's Baa2 baseline credit assessment, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.