Fitch affirms Datang

Fitch Ratings said it affirmed Datang International Power Generation Co. Ltd.'s long-term foreign- and local-currency issuer default ratings at BB, senior debt ratings at BB and short-term foreign- and local-currency issuer default ratings at B.

The outlook is stable.

The agency said the affirmation of the ratings reflects the stable position of Datang and the parent China Datang Corp. in the face of continued disparity between high coal prices and artificially low electricity tariffs.

Datang remains exposed to financial deterioration due to a weak thermal power industry and lack of a transparent pass-through mechanism for rising coal prices, Fitch said, and the agency expects Datang's total adjusted debt-to-operating EBITDAR ratio to remain above 8.5 times over the medium term.

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