TEXT-S&P summary: China Resources Power Holdings Co. Ltd.

Wed Jun 27, 2012 8:07am EDT

(The following statement was released by the rating agency)

June 27 -

===============================================================================

Summary analysis -- China Resources Power Holdings Co. Ltd. ------- 27-Jun-2012

===============================================================================

CREDIT RATING: BBB/Negative/-- Country: Hong Kong

Primary SIC: Electric Services

===============================================================================

Credit Rating History:

Local currency Foreign currency

26-Jul-2010 BBB/-- BBB/--

===============================================================================

Issues:

Rating Rating Date

US$500 mil 3.75% nts due 08/03/2015 BBB- 26-Jul-2010

CNY1 bil 3.75% nts ser B due 11/12/2015 BBB- 03-Dec-2010

CNY1 bil 2.9% nts ser A due 11/12/2013 BBB- 03-Dec-2010

Rationale

The corporate credit rating on China Resources Power Holdings Co. Ltd. (CR Power) is based on the company's 'bbb-' stand-alone credit profile and our opinion that there is a "moderate" likelihood that the government of China (AA-/Stable/A-1+; cnAAA/cnA-1+) will provide timely and sufficient extraordinary support to CR Power through its state-owned parent, China Resources (Holdings) Co. Ltd. (CRH), in the event of financial distress.

CR Power's stand-alone credit profile reflects the company's "satisfactory" business risk profile, moderated by its "significant" financial risk profile.

In our view, CR Power's business risk profile is supported by its good market position in regions with high growth in power consumption in China, and the company's higher operating efficiency and profitability than its peers'. The unpredictable regulatory changes in the Chinese power generation sector and CR Power's high exposure to coal price fluctuations temper these strengths.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.