S&P Downgrades KEPCO Credit Rating to 'bb+'

[Image source=Yonhap News]

[Asia Economy Reporter Jin-ho Kim] The international credit rating agency Standard & Poor's (S&P) announced on the 26th that it has downgraded Korea Electric Power Corporation's (KEPCO) standalone credit rating from 'bbb-' to 'bb+'. The standalone credit rating reflects the company's creditworthiness excluding the possibility of government support.

S&P explained the downgrade by stating, "Due to the surge in fuel costs and limited electricity rate increases, a large-scale operating loss may occur over the next 12 months," and added, "Continued facility investments could also lead to a sharp increase in debt and deterioration of financial indicators."

It further noted, "The newly formed Korean government has yet to specify the direction of power policy and compensation plans for recent fuel cost-related losses."

KEPCO recorded an operating loss of 7.7869 trillion won on a consolidated basis in the first quarter of this year, turning to a deficit compared to the same period last year. This is the largest quarterly loss on record.

This content was produced with the assistance of AI translation services.