S&P rates Kosep notes A

Standard & Poor's said it assigned an A rating to Korea South East Power Co. Ltd.'s (Kosep) proposed issue of dollar-denominated senior unsecured notes.

The proceeds will be used to purchase imported fuels and make capital investments.

The rating is equalized with the rating on Korea Electric Power Corp. (Kepco), which wholly owns Kosep.

The rating also reflects its importance to Korea's national electricity supply and the remoteness of any prospect for it to be privatized, the agency said.

Constraining factors include lack of transparency in the Korean government's electricity price-setting, deterioration of Kosep's financial profile and its exposure to volatility in fuel prices, S&P said.

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