Moody's Upgrades KEPCO's Rating
Its rating surpasses Korea's sovereign rating

Moody's Investors Service recently upgraded the foreign-currency debt rating of Korea Electric Power Corp. (KEPCO), South Korea's state-run power utility, to a level higher than that of the country's sovereign rating.
The global rating agency noted KEPCO's rating has been raised to "A2"from "A3" with the long term outlook stable, making the company the first utility surpassing the South Korea's government debt rating at "A3"
The local currency issuer rating has also been upped from A2 to A.
"The rating upgrade reflects KEPCO's continued solid financial profile" a Moody's representative said.
The company's dominant position in the Korean power sector, as well as the South Korean government's careful approach to power sector reform, were also behind the decision, Moody's said.
South Korea's government had been pushing to separate and privatize KEPCO's power distribution lines into six companies by 2009 until the plan lost momentum in June of last year.
A tripartite commission composed of government officials, labor unions and management expressed opposition to the plan, saying the reform could make the supply of electricity volatile.
"It is rare a state-run company without overseas business branches to get a higher credit that the government's rating" KEPCO officials said.
"This reflects the company's financial structure has remained healthy,"they added.
Concern has been growing over the possible deteriorating profit structure for the KEPCO due to the continued rise in fuel prices including oil, in particular.
But the KEPCO has managed to maintain outstanding business performance despite the anxieties.
Experts attributed the KEPCO's realizing phenomenal performance to its continued pursuit of ethical management with the goal of enhancing the managerial transparency under the leadership of KEPCO president Han Joon-ho. nw

KEPCO President-CEO Han Joon-ho