The gradual pace of deregulation in the Korean power sector. Solid growth prospects for electricity demand in Korea. Strong capital structure compared with other GENCOs. Improving cash flow generation. A gradual rise in market risks as competition is introduced over the next few years. The company's entire earnings are derived from the power generation business. Potentially large maintenance costs for older plants. Short management track record under a new corporate structure. The rating on Korea Midland Power Co. Ltd. (KOMIPO) is based on the company's position as one of the five thermal electric power-generating companies in Korea, as well as its improving cash flow generation. The positive outlook on KOMIPO reflects the possibility of an upgrade in two to three
