S&P rates Korea Hydro notes AA

S&P said it assigned an AA long-term issue rating to a planned offering of dollar-denominated senior unsecured notes by Korea Hydro & Nuclear Power Co. Ltd. The notes will be drawn from its $5 billion global medium-term note program.

“We equalize the rating on the notes with the issuer credit rating on KHNP because of limited subordination risks. We view KHNP as a core subsidiary of Korea Electric Power Corp. (Kepco; AA/stable/A-1+), and therefore equalize the ratings on KHNP with that on Kepco. Our rating on Kepco is equalized with that on South Korea (AA/stable/A-1+) due to Kepco's special public status of implementing the government's electricity policy,” S&P said in a press release.

The company plans to use the proceeds for general corporate purposes.

The outlook is stable.

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