S&P lifts China Three Gorges view to positive

Standard & Poor’s said it revised the outlook on China Three Gorges Corp. to positive from stable.

The agency also said it affirmed the company’s A long-term corporate credit rating.

S&P also said it raised the company’s long-term Greater China regional scale rating to cnAAA from cnAA+.

The ratings reflect that the company is wholly owned by the Chinese government, the agency said. Its financial health could materially strengthen after the company completes a proposed asset restructuring, S&P said.

China Three Gorges’ subsidiary, Yangtze Power, also proposes to acquire two mega operating hydro projects from the parent, the agency said, and primarily fund the acquisition through new shares issued to its parent and external investors.

This asset injection is highly strategic for China Three Gorges because it could help the company to better manage its financial leverage and partially fund the construction of two further mega projects during 2016 through 2020, S&P said.

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