Moody's: Asian utilities stable

Moody's Investors Service said it sees a stable rating outlook in 2008 for Asian power utilities, an industry that continues to record a strong performance despite a measure of credit risk from the effects of higher fuel prices, larger capital expenditure and growing overseas investments.

In a new report, the agency said the sector's ratings have been supported by a high degree of regulatory stability across the region, continued strong demand for electricity and the power companies' sound financial profiles.

For most companies, operating cash flow will be insufficient to cover capital expenditures and working capital requirements, resulting in higher debt levels, the agency said. This remains a key rating concern, Moody's added.

However, the predictable and stable nature of operating cash flows, supportive regulatory regimes and strong market positions does provide some comfort, the agency 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.