Moody's rates Kosep notes A1

Moody's Investors Service said it assigned an A1 rating to Korea South-East Power Co., Ltd.'s (Kosep) proposed senior unsecured dollar-denominated notes.

Moody's also said it affirmed its A1 issuer rating.

The outlook is stable.

The proceeds will be used for general corporate purposes.

The rating is closely linked to the credit rating of Korea Electric Power Corp. (Kepco) given it 100% ownership interest and role as the sole off-taker, Moody's said.

The rating also reflects a supportive regulatory environment, which should continue in the medium term, the agency said.

The company's strong access to the domestic capital and bank markets adds further support to the rating, Moody's said.

Despite its higher business risk profile, Kosep can pass on increases in its fuel costs to Kepco under the cost-based pool system, the agency added.

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