S&P rates Korea Midland Power bonds A-

Standard & Poor's said it assigned an A- rating to Korea Midland Power Co. Ltd.'s (A-/stable) proposed $200 million senior unsecured global bonds due 2016. Korea Midland Power is 100% owned by Korea Electric Power Corp. (A/stable/A-1).

The rating on Korea Midland Power reflects the company's position as one of the five thermal electric power generation companies in Korea and its stable and strong cash flow generation capability, the agency said. The rating also reflects the expectation that reform and deregulation of the Korean electric utility industry will continue at a very gradual pace, minimizing the risk of disruptions in what is now a very predictable business environment.

S&P said that despite increasing debt levels, the company's debt to capital ratio is expected to remain strong at 20% to 25% and debt to EBITDA at 1x to 1.5x over the next few years.

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