S&P rates Korea South East Power credit A-

Standard & Poor's said it assigned an A- long-term corporate credit rating to Korea South East Power Co. Ltd., a subsidiary of Korea Electric Power Corp. (A/stable/A-1).

The outlook is stable.

The rating is based on the company's position as one of the five thermal electric power-generating companies in Korea. Reform and deregulation of the Korean electric utility industry should continue at a very moderate pace, with continued strong oversight by the regulators, minimizing the risk of disruptions in what is now a very predictable business environment, the agency said.

The company's debt-to-EBITDA ratio should remain below 3.5x over the next few years, and despite the margin pressures faced by the company, it should continue to generate stable cash flow, backed by continued growth in electricity demand and its ability to sell 100% of its supply to parent company Korea Power, the agency said.

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