Moody's: Korea Hydro positive

Moody's Investors Service said it assigned an A2 local currency issuer rating to Korea Hydro & Nuclear Power Co. The outlook is positive.

At the same time, Moody's said it revised the outlook for Korea Hydro's A3 foreign currency debt rating to positive from stable, in line with its local currency rating.

The rating agency said that any future upgrade of the local currency rating would trigger an upgrade of the foreign currency debt rating.

Moody's said the positive outlook is in line with Kepco and reflects Moody's expectation that the Korean government's decision to put on hold its plan to privatize Kepco's distribution subsidiaries - an action which further implies suspension of the plan to introduce a two-way bidding system for the power trading pool - reduces the risk of potential power price volatility and raises stability in the power sector. Furthermore, Moody's believes that competition in the power generation sector will remain well-contained given the delay in the privatization of the gencos.

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