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Moody's: Asian utilities view negative
A growing number of debt-funded acquisitions combined with heavy capital expenditure requirements among rated utilities companies have played key roles in the negative outlook for the Asian utilities sector over the next 12 to 18 months, said a new report by Moody's Investors Service.
The report also cites margin pressure on issuers from higher fuel costs and the lack of automatic mechanisms for passing on rising costs to end users as additional reasons for a negative outlook.
However, Moody's said it does not expect dramatic rating changes because the sector continues to show supporting factors, including strong levels of government ownership, supportive regulatory environments, protected market positions, sustainable growth in electricity demand and a commitment to improving operating efficiencies, the agency said.
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