OREANDA-NEWS. S&P Global Ratings today said that it has raised to 'AA' from 'AA-' its long-term corporate credit and debt ratings on 10 Korean government-related entities (GREs) (see list below). The outlooks on the ratings are stable. At the same time, we affirmed the 'cnAAA' Greater China regional scale debt ratings on Korea Land and Housing Corp. (LH), Korea National Oil Corp. (KNOC), and Korea Expressway Corp. (KEC), and 'A-1+' short-term rating on Korea Electric Power Corp. (KEPCO).

The upgrades of the GREs follow our upgrade of the Republic of Korea (AA/Stable/A-1+) (see "Republic of Korea Long-Term Sovereign Rating Raised To 'AA' With Stable Outlook; Short-Term Rating Affirmed At 'A-1+'" published Aug. 8, 2016).

We have equalized the ratings and outlooks on five entities--Korea Land and Housing Corp. (LH), Korea Railroad Network Authority (KRNA), Korea National Oil Corp. (KNOC), Korea Expressway Corp. (KEC), and Korea Electric Power Corp. (KEPCO)--with the sovereign rating and outlook. This reflects the entities' integral linkages with, and their critical roles to, the government of Korea. We believe there is an almost certain likelihood of extraordinary government support for these GREs.

We have equalized the ratings and outlooks on the five power generating subsidiaries of KEPCO-- Korea Hydro & Nuclear Power Co. Ltd. (KHNP), Korea Midland Power Co. Ltd. (KOMIPO), Korea South East Power Co. Ltd. (KOSEP), Korea Southern Power Co. Ltd. (KOSPO), and Korea East-West Power Co. Ltd. (KEWP)--with the rating and outlook on KEPCO. This reflects our view that the five subsidiaries are the core subsidiaries of KEPCO and the government's extraordinary support is more likely to flow through KEPCO to the five subsidiaries due to close ties in business and cash flow generation.