Moody's rates Kowepo notes Aa2

Moody's Investors Service said it assigned an Aa2 rating to the proposed senior unsecured Swiss franc notes to be issued by Korea Western Power Co., Ltd. (Kowepo).

The outlook is stable.

The notes will be issued under Kowepo's existing $2 billion global medium-term note program, which has an Aa2 rating.

The company plans to use the proceeds for the financing or refinancing of its investments in renewable energy, pollution prevention and control and energy efficiency, Moody's said.

The ratings reflect Kowepo's close operational and financial links to its parent, Korea Electric Power Corp. (Kepco), the agency said, and its strategic importance to Korea's economy as a major power generator.

Moody's said it expects that both Kepco and the government of Korea will take strong measures if needed to contain any material widespread disruptions to the operations of Kepco's six power generation companies.

The companies have a strategic importance to Korea's economy as illustrated by its heavy reliance on the generating companies for the supply of electricity to Korea, the agency said.

Kowepo's standalone credit strength reflects its solid market position as a major power generator in Korea and its diversified fuel mix, Moody's said.

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