CLP Holdings and CLP Powers ratings affirmed; outlook stable - Moody's

Mon. July 28, 2008; Posted: 04:43 AM

MUMBAI, Jul 28, 2008 (Thomson Financial via COMTEX) -- CLPHY | Quote | Chart | News | PowerRating -- Moody's Investors Service said it affirmed CLP Holdings Ltd's 'A2' issuer rating and its subsidiary CLP Power Hong Kong Ltd's 'A1' senior unsecured debt rating with a stable outlook following CLP Holdings' announcement that it has won a bid to build and operate a 1,320 megawatt coal-fired power plant in northern India with an investment cost of $1.2 billion.

Moody's said this is to be mainly debt funded and accounts for about 7 percent of the company's total assets and will be spent gradually over the next three to four years and is not expected to have a material impact on CLP Holdings' financial profile.

The ratings continue to be underpinned by the very stable cash flow generated by CLP Power which operates under the Scheme of Control arrangement in Hong Kong, the ratings agency said.

This offers a transparent tariff system and allows 100 percent cost pass through, Moody's noted.

CLP Power will remain a key cash flow generating subsidiary of CLP Holdings and account for about 60 percent of the group's fund flow from operation, thus providing key support to the ratings, Moody's said.

The stable outlook reflects Moody's expectation that CLP Holdings will continue its prudent financial policy when pursuing its overseas investments, Moody's said.

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