Solid market position as one of Korea's five thermal electric-power-generation companies Good operating efficiency Strong and stable cash-flow-generating ability Large capacity-expansion plans to meet rising long-term electricity demand High cost of raw materials Lack of transparency in the electricity price-setting mechanism 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 (GENCOs) in Korea (foreign currency A/Stable/A-1; local currency A+/Stable/A-1), as well as its stable and strong cash flow-generation capability. Standard&Poor's Ratings Services expects that reform and deregulation of the Korean electric-utility industry will continue at a very gradual pace, minimizing the risk of disruptions in what is now a very predictable business environment. In
