Fitch affirms Korea power companies

Fitch Ratings said it affirmed all the ratings of the six generation companies wholly owned by Korea Electric Power Corp.

The outlook is stable.

The affirmed ratings include Korea Hydro & Nuclear Power Co., Ltd.'s long-term foreign-currency issuer default rating at A and short-term foreign-currency issuer default rating at F1; Korea East-West Power Co., Ltd.'s long-term foreign-currency issuer default rating at A-, short-term foreign-currency issuer default rating at F2 and senior unsecured at A-; Korea Midland Power Co., Ltd.'s long-term foreign-currency issuer default rating at A-, short-term foreign-currency issuer default rating at F2 and senior unsecured at A-; Korea South-East Power Co., Ltd.'s long-term foreign-currency issuer default rating at A-, short-term foreign-currency issuer default rating at F2 and senior unsecured at A-; Korea Southern Power Co., Ltd.'s long-term foreign-currency issuer default rating at A-, short-term foreign-currency issuer default rating at F2 and senior unsecured at A-; and Korea Western Power Co., Ltd.'s long-term foreign-currency issuer default rating at A-, short-term at F2 and senior unsecured at A-.

The ratings of the five generation companies are derived by notching down from Korea Power's issuer default rating, Fitch said.

Rising fuel prices continues to be a credit concern, although it is mitigated to some extent by the long-term contracts that these companies in place for fuel requirements, the agency said.

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