CLP Group entities achieved good credit rating result in annual review.
On 16 September 2019 and 10 October 2019, Standard & Poor's ("S&P") affirmed the A and A+ credit ratings of CLP Holdings and CLP Power Hong Kong respectively with stable outlooks. S&P opined that CLP's Hong Kong business benefits from a transparent and predictable regulatory framework that allows generation of highly visible and stable operating cash flows, noting the Group also has unregulated operations outside Hong Kong which are subject to power demand and supply, fuel availability, cost pass-through, and the environment policies of governments. On 24 September 2019, S&P affirmed CAPCO's AA- credit rating with stable outlook. S&P opined that CAPCO benefits from a strong and transparent regulatory regime with all costs passed through to the end user on a timely basis. S&P noted CAPCO is well insulated from ultimate parent CLP Holdings in view of the protection provided by the robust regulatory regime in Hong Kong and limited influence from the parent.
On 27 May 2019 and 30 May 2019, Moody's affirmed the A2 and A1 credit ratings of CLP Holdings and CLP Power Hong Kong respectively with stable outlooks. The credit ratings reflect the large earnings contribution from CLP Power Hong Kong, which will continue to generate predictable cash flow supported by a highly stable regulatory environment, the CLP Group's strong financial profile, well-managed debt maturities, sound liquidity profile and good access to the domestic and international banks and capital markets, amidst rising business exposure outside Hong Kong and reduction of permitted return under the new SoC Agreement. On 6 June 2019, Moody’s affirmed A1 credit rating of CAPCO with stable outlook. This rating reflects the company’s predictable cash flow and low-risk business profile, which are underpinned by its robust power purchase agreement with CLP Power Hong Kong and the stable regulatory environment in Hong Kong.
On 29 November 2019, S&P affirmed EnergyAustralia's BBB+ credit rating with stable outlook. This reflects EnergyAustralia's position as one of the largest vertically integrated energy utilities in Australia, with significant balance-sheet capacity to undertake growth-related investments. At the same time, S&P noted EnergyAustralia's operating challenges including coal quality issues at Mount Piper Power Station, as well as the impact of default retail price regulations.