Moody's assigns Aa2 to Kepco notes

Moody's Investors Service said it assigned an Aa2 rating to the planned senior unsecured dollar-denominated notes to be issued by Korea Electric Power Corp. or Kepco.

The notes will be sold under Kepco’s $3 billion global medium-term note program, which is rated (P) Aa2.

"The Aa2 rating primarily reflects Moody's assessment of a very high likelihood of extraordinary support for Kepco from the Korean government (Aa2 stable), given the company's essential public policy role and strategic importance, and the government's low tolerance for the reputational and contagion risks that would result from a default," said Mic Kang, a Moody's vice president and senior credit officer, in a press release.

Kepco plans to use all or part of the proceeds to fund or refinance outstanding and future debt for eligible green projects, which include the development of solar photovoltaic power and wind power sources, increasing stability in the power supply, promoting clean transportation and improving energy efficiency.

The outlook is stable.

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