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Credit Ratings

CLP Group entities achieved good credit rating result in annual review.

On 26 May 2017, Standard & Poor's ("S&P") upgraded the credit ratings of CLP Holdings and CLP Power Hong Kong to A (from A-) and A+ (from A) respectively with stable outlooks.  The rating upgrade is attributed to the strengthening of financial profile due to reduced debt leverage by CLP Group, Castle Peak Power Co. Ltd.'s ("CAPCO") improved capital structure after reclassification of shareholder's loan, CLP Holdings’ disciplined financial policy and expected further improvement of its financial performance.  S&P considers the new scheme of control agreement can provide CLP Power Hong Kong higher certainty to facilitate long-term capital deployment to meet the Hong Kong Government’s clean energy target.  On 6 June 2017, S&P assigned AA- credit rating to CAPCO with stable outlook.  This is the first time that CAPCO applies for credit rating.  S&P explained that this credit rating reflects its view that CAPCO operates in an open and transparent landscape as a regulated utility, whereby costs are passed through and returns are dictated by the Scheme of Control agreement.

On 30 December 2016, Moody's affirmed the A2 and A1 credit rating of CLP Holdings and CLP Power Hong Kong respectively with stable outlooks.  The credit ratings reflect (i) the significant earning contributions from CLP Power Hong Kong, which has strong and predictable cash flows and operates in a highly stable regulatory environment; (ii) sound liquidity profile, supported by good access to the domestic and international bank and capital markets; and (iii) well-managed debt maturity profile.  On 7 June 2017, Moody’s assigned A1 long-term credit rating to CAPCO with stable outlook.  This rating reflects the company’s predictable cash flow, strong financial profile and low-risk business profile underpinned by the Scheme of Control regime.

On 26 July 2016, S&P upgraded the rating of EnergyAustralia to BBB from BBB- and outlook to positive.  This reflects the strengthening of EnergyAustralia's financial risk profile after the significant pay-down of external debt with proceeds from Iona asset sale and a target capital structure that EnergyAustralia would like to sustain.  The positive outlook reflects S&P's expectations that EnergyAustralia's rating could move higher if it can resolve fuel supply issues at Mount Piper, maintain operational stability and sustain target leverage.

 

CLP HoldingsCLP Power HKCAPCOEnergyAustralia
Standard &
Poor’s
Moody'sStandard &
Poor’s
Moody'sStandard &
Poor’s
Moody'sStandard &
Poor’s
Long term Rating
Foreign CurrencyCLP HoldingsAA2CLP Power HKA+A1CAPCOAA-A1EnergyAustraliaBBB
OutlookCLP HoldingsStableStableCLP Power HKStableStableCAPCOStableStableEnergyAustraliaPositive
Local CurrencyCLP HoldingsAA2CLP Power HKA+A1CAPCOAA-A1EnergyAustraliaBBB
OutlookCLP HoldingsStableStableCLP Power HKStableStableCAPCOStableStableEnergyAustraliaPositive
Short term Rating
Foreign CurrencyCLP HoldingsA-1P-1CLP Power HKA-1P-1CAPCOA-1+P-1EnergyAustralia--
Local CurrencyCLP HoldingsA-1P-1CLP Power HKA-1P-1CAPCOA-1+P-1EnergyAustralia--

 

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