Core subsidiary of Korea Electric Power Co. Ltd. Key company in national electricity supply Reduced risk of privatization Lack of transparency in electricity price-setting system Large capital investments Standard&Poor's Ratings Services has equalized the long-term corporate credit rating on Korea Midland Power Co. Ltd. (KOMIPO; A/Stable/--) with the rating on Korea Electric Power Corp. (KEPCO; A/Stable/A-1), which fully owns KOMIPO. The rating on KOMIPO also reflects its importance to the national electricity supply and reduced risk that the government of Korea will privatize it. Constraining factors include a lack of transparency in the price-setting system for electricity and a deterioration of KOMIPO's financial profile. The rating equalization with KEPCO reflects, for the most part, our opinion that KOMIPO's
