Fitch rates Datang Power BBB

Fitch Ratings said it assigned Datang International Power Generation Co. Ltd. long-term foreign- and local-currency issuer default ratings of BBB and short-term foreign- and local-currency ratings of F3.

The outlook is stable.

The ratings reflect the company's position as one of the largest independent power producers in China with diversified generating assets, healthy operating records, a robust financial profile, supportive government shareholders and a track record of achieving rapid growth while maintaining strong profitability, Fitch said.

The ratings also take into account the support from the Chinese government. The company's coverage ratios have remained strong with operating EBITDA of about 9.6x in 2005.

The ratings also factor in the adverse impact of high coal prices. Fuel is the largest component of Datang's cost structure and the company is highly exposed to the domestic coal market, where prices have risen owing to tight supply and booming demand over the past two years, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.