Korea Midland Power Co. Ltd.

This report does not constitute a rating action. Overview Key strengths Key risks Core subsidiary of Korea Electric Power Corp. (Kepco) and one of Korea's major coal-based power generation companies (gencos). Lack of transparency in government mechanism to adjust wholesale electricity prices. Good market position in electricity supply, accounting for about 8% of national power generation. Rising investments in environmentally-friendly power generation. Low cyclicality of demand. Elevated debt due to ongoing capital expenditure (capex) to replace coal-based plant. We expect the company to remain a core subsidiary of Kepco (AA/Stable/A-1+), given Kepco's role of providing a stable supply of electricity in Korea. Komipo generates about 8% of Korea's total power. We equalize the rating on Kepco with that on South

...We equalize the rating on Korea Midland Power Co. Ltd. (Komipo) with that on its parent. We expect the company to remain a core subsidiary of Kepco (##/Stable/A-1+), given Kepco's role of providing a stable supply of electricity in Korea. Komipo generates about 8% of Korea's total power. We equalize the rating on Kepco with that on South Korea (##/Stable/A-1+) to reflect the company's special public status in implementing the government's electricity policy....

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