S&P: Korea Electric Power unchanged

Standard & Poor's said that there is no impact on its ratings on Korea Electric Power Corp. (Kepco, A/stable/A-1) from the recent announcement that the company will buy back 2.95% of stock worth about Korean W655 billion from the government and issue an estimated W850 billion in exchangeable bonds overseas based on treasury shares.

The agency said that the reason for the share buyback is believed to be related to concerns over the national budget rather than changes in the government's shareholding in Kepco.

After the share buyback, the Korean government's direct and indirect ownership will remain a majority 51%, S&P said.

"KEPCO's ratings will not be affected at this time, considering the additional debt amount to finance the share buyback is not expected to significantly damage the company's financial risk profile," said S&P credit analyst Jae Min Kwon.

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