(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/--
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
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.