Moody’s rates Kepco MTNs Aa2

Moody’s Investors Service said it gave an Aa2 rating to dollar-denominated medium-term notes Korea Electric Power Corp. plans to sell. Kepco will sell the notes under its $11 billion MTN program, which is rated (P) Aa2.

"The Aa2 ratings primarily reflect 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 a part of the proceeds for to fund or refinance existing and future debt for the development and operations of projects associated with renewable energy, clean transportation and energy efficiency.

The outlook is stable.

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